Credit card debt is a growing crisis nationwide, with the total amount of credit card debt now sitting at an all-time high of $1.14 trillion, up nearly 6% from one year ago. As the total amount of credit card debt has been climbing, so has the number of late payments and maxed-out credit card accounts, illustrating the financial burden this type of debt can have on cardholders.

One major factor driving this crisis is the high-rate environment. The average credit card interest rate is almost 23% currently, which can significantly increase the cost of borrowing. Inflation also had a major impact on the cost of goods and services over the last few years, leaving people cash-strapped. And in this high-rate, high-cost environment, even those making regular payments can quickly fall behind.

For cardholders in dire financial straits, credit card debt forgiveness (also known as debt settlement) could be a lifeline. Debt forgiveness allows you to reduce your outstanding card balances by settling your debt for a lower amount. While it varies, debt forgiveness could reduce what you owe by 30% to 50%, offering significant relief. However, there are some surprising costs tied to this approach.

Frustrated with your expensive credit card debt? Find out how debt relief could help now.

3 surprising credit card debt forgiveness costs to know

Before pursuing credit card debt forgiveness, it’s important to know these hidden expenses.

Debt relief company fees

One of the most significant costs associated with credit card debt forgiveness are the fees charged by debt relief companies. While debt settlement can be pursued on your own, in many cases, cardholders will use a debt relief company to act as the intermediary between themselves and their creditors to secure the lower payoff amount. While their services can be valuable, they aren’t free.

Debt relief companies typically structure their fees as a percentage of the total debt balance or the amount of debt forgiven. This percentage generally ranges from 15% to 25% of the original debt amount. For example, if you have $20,000 in credit card debt and the company negotiates a 40% reduction, bringing your balance down to $12,000, you might still owe the debt relief company up to $5,000 in fees.

It’s important to note that these fees are charged in addition to the reduced balance you’ll need to pay your creditors. So while you may see a significant reduction in what you owe to credit card companies, the overall savings might not be as substantial once you factor in the debt relief company’s cost. 

Learn more about the debt relief strategies available to you today.

Income tax implications

Another credit card debt forgiveness cost comes in the form of potential tax liabilities. When a creditor forgives a portion of your debt, the IRS generally considers the forgiven amount to be taxable income. This can come as a shock to those who assume that debt forgiveness equates to a clean financial slate.

For example, if you have $30,000 in credit card debt and $15,000 is forgiven through debt settlement, you may need to report that $15,000 as income on your tax return. Depending on your tax bracket, this could result in a significant tax bill come April.

Receiving a large sum of “income” from forgiven debt could also push you into a higher tax bracket, potentially affecting other aspects of your financial life, such as eligibility for certain deductions or credits. So, it’s crucial to factor in the potential tax implications as part of the overall cost-benefit analysis of debt forgiveness.

Higher borrowing costs

While credit card debt forgiveness can provide immediate relief from overwhelming balances, it often comes with a long-term cost in the form of higher borrowing costs. This is primarily due to the negative impact that debt settlement can have on your credit score.

When you settle a debt for less than the full amount owed, it’s typically reported to credit bureaus as “settled” rather than “paid in full.” This notation can remain on your credit report for up to seven years and can significantly lower your credit score. The exact impact varies depending on your credit profile, but it’s not uncommon to see drops of 100 points or more.

A lower credit score translates directly into higher borrowing costs. This affects not just future credit card applications but also mortgage rates, auto loan rates and insurance premiums. While these higher costs are often temporary, as credit scores can recover over time with responsible financial behavior, they still represent a significant consideration. 

The bottom line

While credit card debt forgiveness can help you get rid of your high-interest debt, it’s important to approach this option with an understanding of its costs. The fees charged by debt relief companies, the potential tax implications and the long-term impact on borrowing costs can significantly reduce the net benefit of debt settlement. So before pursuing debt forgiveness, you may want to explore other options such as credit counseling, debt consolidation or negotiating directly with creditors, to determine what makes the most sense for you.

Just days after Apple held an event revealing its new iPhone, Apple Watch and AirPod models, the U.S. Food and Drug Administration has approved an Apple Watch function that can detect sleep apnea in device-wearers.

The sleep apnea detection tool comes four days before the launch date of Apple’s new Series 10 watch, which will be released on September 20. Those with existing Apple Watch Series 9 and Watch Ultra 2 models can use the sleep apnea feature starting today, however, with download of Apple’s newly released watchOS 11 software.

People who suffer from sleep apnea repeatedly stop and start breathing overnight and can, as a result, feel tired in the morning. Left undetected, sleep apnea can cause heart problems and other complications, in serious cases. Loud snoring can sometimes be a symptom. The condition affects an estimated 1 billion people worldwide and is often undiagnosed, according to health organizations including the American Heart Association.

According to the FDA’s approval notice, the Apple Watch sleep apnea function is not a diagnostic tool, but rather an over-the-counter device designed to assess watch-wearers’ risk of sleep apnea. Apple says the new health feature, Breathing Disturbances, is a metric that acts as an “intelligent guardian for users’ health.” 

The feature works using an accelerometer on the watch that detects “small movements at the wrist associated with interruptions to normal respiratory patterns” during sleep, according to Apple. Every 30 days, Apple Watch analyzes Breathing Disturbance data and alerts those users with a consistent pattern of sleep interruptions to visit a physician for possible diagnosis of sleep apnea.

“Empowering consumers everywhere to have the ability to reliably identify the presence of abnormal breathing patterns during sleep can help uncover a woefully underdiagnosed and serious medical condition such as sleep apnea,” Sairam Parthasarathy, professor of medicine at the University of Arizona and director of Health Sciences Center for Sleep, Circadian and Neurosciences Center for Sleep, UA Health Sciences, said in a statement. “This is a major step forward in improving public health.”

The FDA’s green-lighting of the sleep apnea feature comes on the heels of the agency’s approval of Apple’s AirPods Pro 2 as over-the-counter hearing aids for users with mild to moderate hearing loss, as the tech giant further cements itself as a player in the health tech market. Hearing experts praised the agency’s approval of the new earbuds as a positive for the OTC hearing market and for the roughly 30 million Americans who suffer from mild to moderate hearing loss. 

Xbox fans may not have a huge new console refresh to look forward to this holiday season like PlayStation 5 owners, but there’s still plenty to play. There’s a massive library of Xbox titles available now, and more still on the way, that should delight just about any gamer. And if you’re looking for a gift for yourself or a loved one as the end of 2024 nears, there’s no better than the gift of play.

It can be overwhelming to figure out which games are hot and which ones are flops. To help you navigate through the sea of options, we’ve curated a list of the cream of the crop, both available now and still to come.

Below, find some of the best Xbox games of the 2024 holiday season. Grab one or a few for yourself or someone you know who needs an epic adventure or some seriously slick storytelling. 

Best game: “Indiana Jones and the Great Circle”

MachineGames’ latest Indian Jones adventure will have you set off on a journey set between the events of “Raiders of the Lost Ark” and “The Last Crusade.” Step into the shoes of the iconic archaeologist Indy himself as he travels the globe in search of ancient artifacts and hidden treasures.

This first-person action-adventure game will include a variety of exotic locations with puzzles to solve and treasure to collect. You’ll also have to take on Nazi forces (always around and ready for a punch), with tons of action sequences like those in the movies. From ancient ruins to bustling cities, you’ll be one step ahead of your enemies as you make your way to your ultimate destination.

It may not be a new Indiana Jones movie, but it’s just as good, with Harrison Ford’s likeness and everything you’d expect from the series. It’ll be available on Xbox as of December 9. 

Best role-playing game: “Like a Dragon: Infinite Wealth”

In the latest installment of the “Like a Dragon” series, you take on the mantle of Ichiban Kasuga as he finds himself stranded in Hawaii. In search of his birth mother, he’s detained and forced into a conspiracy he wants no part of. With the help of “Yakuza” mainstay Kazuma Kiryu, Ichiban has to figure out how to get back to Japan on top of unraveling what nefarious forces want with him in this tropical paradise.

This RPG is part turn-based adventure and action game, as you progress through the story and take part in a variety of experiences: The main story, an “Animal Crossing”-like simulator game, host and business club sims, and much more with a mind-boggling amount of content. 

There’s always something new to discover right around the corner in this game, but where it really shines is its ability to drain every drop of tears out of you one minute while making you giggle the next. It’ll also give you the rundown on the iconic Kiryu as far as his future with the series. 

Best fighting game: “Tekken 8”

If you love fighting games, the Tekken series is for you. It’s sold more than 55 million copies worldwide and it’s been an arcade mega-hit for the entirety of its inception. This new installment is just as good, too. The story continues to follow the tragic saga of the Mishima and Kazama bloodlines, with world-shaking father-son grudge matches. This game kicks off after Kazuya has defeated his father using the forces of G Corporation. 

If you’ve been gaming under a rock since 1994, “Tekken” is the best known 3D fighting game. The latest version offers the same level of challenge as its predecessors, but with a new and optional control scheme for those new to the series. It also provides an easier and more accessible way to experience this high-intensity game for the first time.

You can play with your choice of 32 fighters. Expect more aggressive gameplay than before and better, next-gen visuals, and plenty of unlockables as you play through the story and other additional modes. There’s plenty here for fighting game vets and newcomers alike.

Best action game: “Senua’s Saga: Hellblade II”

One of the most exciting and impactful action games in the Xbox catalogue is “Hellblade: Senua’s Sacrifice,” and now the torch gets to be passed to its sequel. Enter the mind of Senua, a Celtic warrior battling her inner demons and the horrors of the Norse mythology-inspired world around her. In this photorealistic adventure, you’ll journey to the depths of her psyche and beyond.

Head through vile, disturbing landscapes and face off against nightmarish creatures while the lines blur between reality and illusion. The game’s intense combat system forces you to think on your toes while you take part in raw battles and grapple with Senua’s mental state; she’s not doing well after the first game, and she’s about to break.

This is a powerful adventure that forces you to stop and think when you’re controlling Senua as she deals with psychosis and other mental challenges while still remaining entertaining. It’s one of the best-looking games on the system by far and it’s well worth trying out for fans of any genre. 

Best first-person shooter game: “Call of Duty: Black Ops 6”

Get ready to take up arms against the bad guys once more in the latest addition to the long-running Call of Duty series. This sixth sequel to the original “Black Ops” is set in the early ’90s and focuses on the aftermath of the Cold War. It has a deep single-player experience to explore in addition to a swath of multiplayer options, which are usually the major draw for players looking to get into a new first-person shooter.

“Black Ops 6” will offer everything from classic team deathmatches to objective-based games and the fan-favorite zombies mode for a bit more variety. It’ll also boast new gameplay mechanics that should improve the way you can interact with NPCs as well as real players, like sprinting, diving, and sliding as well as automated player movements. It’s set to be one of the most polished Call of Duty games, and it’s easy to see why in early trailers.

“Call of Duty: Black Ops 6” is reporting in on October 25. 

Best adventure game: “Dragon Age: The Veilguard”

The latest installment in the “Dragon Age” series looks to be an impressive one. As the customizable protagonist Rook, you’ll once again shape your own story, choosing your class, lineage, gender, and appearance. These choices not only impact Rook’s abilities and playstyle but unlock different narrative paths, dialogue options, and gameplay interactions throughout the story.

The action-RPG mechanics of “Dragon Age: Veilguard” have evolved this time around, making for a more immersive experience. Choose between the classic warrior, rogue and mage classes, each with their own specialized sub-classes, and engage in real-time battles. Unleash special moves using the ability wheel, or pause the action to select skills from your party members.

Your decisions will have far-reaching consequences. Align yourself with different factions, each with its own agenda and goals, and see how your choices change the game. This meaty BioWare RPG experience should be one of the series’ most explosive yet. You’ll be able to play it on October 31. 

Best platforming game: “Sonic X Shadow Generations”

Sonic fans, you’re in for a treat. “Sonic Generations,” widely regarded as one of the best 3D Sonic games, makes a triumphant comeback with “Sonic X Shadow Generations.”

This new release not only includes a fully remastered version of the original game but also introduces a brand-new campaign starring the fan-favorite Shadow the Hedgehog. You’ll get classic “Sonic Generations” gameplay was well as fresh content that explores Shadow’s storyline, which should deliver an exciting team-up between Sonic, the speedy blue hedgehog, and Shadow, the ultimate lifeform.

With improved visuals and mechanics as well as the addition of Shadow’s unique abilities, this remix of a classic “Sonic” game should be an exciting addition to just about any Switch fan’s library.

You can catch “Sonic X Shadow Generations” when it heads to Xbox on October 25. 

Brittany Vincent

Brittany Vincent has been covering gaming, tech, and all things entertainment for 16 years for a variety of online and print publications. She’s been covering the commerce space for nearly a decade.