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When should you consider credit card debt forgiveness?

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Cut up credit cards
Credit card debt forgiveness could be a smart option to consider — but it won’t be right in every situation.

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Allowing your credit card debt to compound is rarely a good idea, but it’s an especially risky proposition right now. With the average credit card rate closing in on 23% currently, even a small balance is at risk of becoming an insurmountable debt over time. Most cardholders aren’t carrying a small balance right now, either. The average cardholder currently has over $7,900 in credit card debt, and at today’s rates, the interest charges alone could make it tough to keep up with the payments. 

Today’s high rates aren’t the only issue, either. While inflation has been cooling over the last four months, the current higher costs of essentials like food, housing and healthcare are eroding consumers’ purchasing power. In turn, many people are stuck relying on their credit cards as they look for ways to bridge the gap between their income and expenses. This cycle of increasing debt and decreasing financial flexibility has led many cash-strapped cardholders to search for solutions to their growing credit card debt.

One option is credit card debt forgiveness, also known as debt settlement. This type of debt relief involves negotiating with creditors to settle outstanding balances for less than the full amount owed. But while debt forgiveness can provide much-needed relief, it’s not a one-size-fits-all solution. There are times when it makes sense to consider it — and times when an alternative debt relief option could work better.

Find the right solution to your high-rate credit card debt today.

When should you consider credit card debt forgiveness?

Here are a few times when you may want to consider whether credit card debt forgiveness makes sense for your needs:

When you’re facing a financial crisis or hardship

If you’ve experienced a significant life event that has drastically reduced your income or increased your expenses, such as job loss, divorce or a major medical emergency, enrolling in a debt forgiveness program may be a viable option. These types of situations can make it impossible to keep up with your regular payments and creditors may be more willing to negotiate a settlement if the alternative means receiving nothing at all.

Learn what debt relief options are available to you here.

When your debt has become unmanageable

If your credit card balances have grown to the point where you’re unable to make progress on paying down the principal, even while making regular payments, it may be time to consider debt forgiveness. This is especially true if you’re only able to afford minimum payments, as the bulk of your payment goes toward interest charges rather than reducing the balance.

When your debt-to-income ratio is exceptionally high

If your total credit card debt exceeds 50% of your annual income, you may be a good candidate for debt forgiveness. A high debt-to-income ratio often indicates that you’re unlikely to repay the full amount within a reasonable timeframe using traditional methods. In such cases, creditors might be more willing to negotiate a settlement, as they recognize the increased risk of default or bankruptcy.

When the long-term benefits outweigh the short-term consequences

Debt forgiveness can have serious negative consequences, including damage to your credit score and potential tax implications. However, if you’re facing a mountain of debt that you have no realistic hope of repaying in full, the long-term financial relief provided by debt forgiveness may outweigh these short-term drawbacks.

When other debt relief options have been exhausted 

Before turning to debt settlement, it’s crucial to explore and exhaust other options first. In some cases, less drastic measures like balance transfer cards, debt consolidation or hardship programs might resolve your debt issues without having a severe impact on your credit score. Considering your other debt relief options also shows creditors that you’re making a genuine effort to repay your debts, which can be beneficial if you eventually need to negotiate a settlement. 

What to know about credit card debt forgiveness

The main advantage of pursuing debt forgiveness is the potential for significant debt reduction. In successful negotiations, creditors may agree to forgive 30% to 50% or more of the original balance. This can make it possible to resolve the debt in a matter of months or a few years, compared to the decades it might otherwise take to pay off large balances.

However, debt settlement can have a negative impact on your credit score, as you temporarily stop payments to save for settlements, and the accounts settled for less than the full amount are typically reported as “settled” on your credit report. This can remain on your credit report for up to seven years.

There are also tax consequences to consider, as the IRS generally considers forgiven debt as taxable income. Debt settlement is not guaranteed to be successful, either. Some creditors may refuse to negotiate or may only agree to minimal reductions in the debt owed. 

The bottom line

Credit card debt forgiveness can be a powerful tool for those struggling with insurmountable debt, but it’s not the right choice for everyone. This debt relief solution has its benefits and its downsides, so it’s important to understand when it may and may not make sense to pursue. To do that, be sure to carefully evaluate your situation and consider all available options. That way, you can make an informed decision about whether debt settlement is the right path forward for you.



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NASA’s “Hidden Figures” awarded Congressional Gold Medal

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NASA’s “Hidden Figures” awarded Congressional Gold Medal – CBS News


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The women who contributed to NASA’s success in the space race were recognized with the Congressional Gold Medal Wednesday, the highest civilian honor bestowed by Congress. They included the four Black women who became known as the “Hidden Figures.”

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Giant “flying” Joro spiders reported across Georgia — and now confirmed in Pennsylvania

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Those aren’t early Halloween decorations: giant Joro spiders, known for parachuting through the air, were spotted in Pennsylvania this month.

Six of the spiders were reported on Sept. 5, according to Joro Watch, an interactive monitoring program developed by the University of Georgia’s Center for Invasive Species and Ecosystem Health. An entomologist visited Pennsylvania’s Bucks County and verified there were adult Joro spiders there.

What are Joro spiders?

Joro spiders, which are an invasive species native to Asia, can shoot out long strands of silk that get caught by the wind, carrying them through the air. Some have called them parachuting spiders because of the way they move. 

They create large webs that can be up to 10 feet wide, according to PennState Extension. 

Joro spider
A close-up view of a giant Joro spider seen along the Nakasendo Way between Sekigahara and Hosokute, Japan, on Nov. 5, 2022.

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Adult females are large and brightly colored, with legs up to 4 inches long, according to experts. Males are much smaller. While female Joro spiders are about an inch long, male Joro spiders have a body length of less than half an inch. 

Female Joro spiders, known for their yellow and gray abdomens, will lay egg sacs holding 400 to 500 eggs.

The spread of Joro spiders — where are they headed?

Joro spiders were first found in the U.S. in Georgia in 2014, but experts believe that the invasive species may have arrived as early as 2010. Joro spiders have spread across the South in the years since. They’ve now been reported across more than half a dozen states. 

In 2022, PennState Extension said that it was likely Joro spiders “will be able to spread throughout eastern North America at least as far north as Pennsylvania and possibly further in warmer, coastal areas.” Researchers there thought it may take 35 years for Joro spiders to reach southeastern Pennsylvania, but said there were two ways Joro spiders could reach Pennsylvania more quickly. 

One was if young and small Joro spiders were transported tens to hundreds of miles through the air after being picked up by strong winds and storms. The other way would be if they were transported to new areas by humans. 

José R. Ramírez-Garofalo, an ecologist at Rutgers University’s Lockwood Lab and the president of Protectors of Pine Oak Woods on Staten Island, in April told SI Live that “it is a matter of when, not if” the spiders arrive in New York and New Jersey.

Are Joro spiders dangerous?

While Joro spiders do have venom, their venom is weak. They also have small fangs, which makes it difficult to pierce human skin.

“We have no evidence that they’ve done any damage to a person or a pet,” Clemson University assistant professor Dave Coyle, who has a doctorate in entomology, previously said.

If a bite does happen, PennState Extension said that it’s less painful than a bee sting, and any localized pain and redness would quickly resolve. 



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Could the “YIMBY” movement fix America’s affordable housing shortage?

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More U.S. cities and states are starting to say “yes, in my backyard” as they struggle to meet the housing needs of growing populations.  

The “YIMBY” movement is a political effort to tackle the country’s housing shortage by increasing the housing supply with strategies like changing zoning codes and other regulations that limit home density. The United States is millions of homes short of what’s needed to meet demand, according to the national nonprofit group “Up for Growth.”   

Minneapolis resident Bernice Duncan has been searching for a new home with more space for more than five years.  The telehealth professional works from home in a cramped two-bedroom apartment she shares with her two adult sons.  

“Everybody is not able to move freely, like you would in a in a house or, you know, having your own office space,” said Duncan. 

During the years she’s been looking, property values have soared. With a $1,600 monthly housing budget, she says she’s been priced out of the market. 

“It’s been a struggle,” Duncan said. “As the economy continues to grow, your paycheck don’t,” she added. “You’re not going to pay less than $2,000.”  

Saying “yes” to more housing 

Twin-Cities YIMBY was formed in 2023 to advocate for policies that will generate more affordable housing options for people like Duncan. The group supports the elimination of zoning restrictions to allow for more home density across the Minneapolis area.  

“In the past five years, our median housing price has increased by $100,000, which is a huge increase” said Paige Kahle, a realtor who founded Twin Cities YIMBY along with colleagues Nichole Hayden and Meghan Howard.  

YIMBYs have been building a coalition of pro-housing advocates across the country to counter those who say “not in my back yard,” known as NIMBYs. 

“I think it’s getting easier. But literally when you go to the local meetings, the city council meetings, planning commission meetings, there’s still NIMBYs that are very loud and very organized and often kind of angry because they don’t want this kind of housing near them,” said Kahle. 

But without a plan to bring housing costs down, Kahle says the shortage is hurting home buyers and renters alike.  

“They’re paying 50% of their income, 60% of their income on housing, which just isn’t sustainable,” she said.  ”We need more housing and we need it quickly,” said Kahle. “Traditionally, how we’ve addressed the housing crisis is through subsidies, massive subsidies to bring down the cost of housing for folks. But there just aren’t enough subsidies in the world to do that. So, we really need to look at these other mechanisms to increase the density and lower the cost of housing.” 

Minneapolis 2040: The city’s plan 

Addressing these concerns is the goal of the Minneapolis 2040 Comprehensive Plan. Passed in 2018, the ambitious bipartisan bill implemented historic zoning reforms to increase the number of available housing units including:  

  • The elimination of single-family-only zoning to permit build duplexes, triplexes and fourplexes in all neighborhoods.  
  • Height minimums for new residential buildings in high-density zones.  
  • The elimination of minimum parking requirements for new housing developments.  

The plan has faced opposition from some homeowners who argue that increased density could undermine the character and charm of single-family neighborhoods.  

“The 2040 Plan will hurt the uniqueness and architectural heritage of many neighborhoods,” said one opponent during a 2018 City Planning Commission meeting.  

Implementation of the plan was paused in 2022 after environmental groups filed a lawsuit arguing the plan may have severe unintended consequences to the environment. In May, a state appeals court ruled to lift an injunction on the plan, and just last month the Minnesota State Supreme Court denied a petition for further review of the objections, clearing the way for the plan to continue.  

“People want a place that they can live, [where] they can afford to raise their family, that’s safe and affordable. So, it’s really been part of the … regional conversation as well as the national conversation,” said Alene Tchourumoff of the Minneapolis Federal Reserve. 

Over the next decade, the Minneapolis Fed is using multiple data sources to track the economic impact of these changes made as part of the 2040 plan. 

“We really wanted to have a deeper understanding of what the effects of the policy change would be, recognizing the fact that these important policy changes in housing often take a long time to actually manifest,” said Tchourumoff. 

There is some promising early data. According to a report by the Pew Charitable Trust, between 2017 and 2022, nearly 21,000 new units were permitted in Minneapolis — most in buildings with 20 or more units. In that same time, rents in the city rose by just 1% — far less than the rest of Minnesota, which saw a 14% rent increase.   

Deregulation across the country 

As Minnesota lawmakers consider expanding these rezoning reforms statewide, other states such as California, Oregon, Massachusetts and Montana have already implemented similar YIMBY policies.  

The changes in Minneapolis are already making a difference for residents like Rebecca Hemmans, who became a first-time homeowner at 67 after viewing nearly 100 listings.   

“I had this dream about living in a single-family home and sitting on my porch with my table of lemonade and glasses for the neighbors to wave at,” Hemmans said.   

To accommodate her budget, she chose to adjust her dream — instead of a single-family home, she purchased an attached townhome, and she’s happy with the compromise.  

“I don’t have to check with the landlord to say, “Hey, can I do this or do that?” she said. “If I want to paint my walls orange, I can do that.”



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