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Can I get all of my credit card debt forgiven?
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Credit card debt: Those three words can frighten even the most financially savvy people, and for good reason. Between today’s record-high average credit card rates — which are hovering near 23% — and the nature of compound interest, it doesn’t take much for credit card debt to become a source of serious financial stress.
But despite the pitfalls of credit card debt, it’s a growing issue nationwide, with the total card debt sitting at over $1.14 trillion and the average cardholder carrying a balance of nearly $8,000 right now. When you factor in the interest charges, even the average amount of card debt can result in a hefty credit card bill each month — one that could become tough to keep up with as the interest charges compound over time. As a result, many cardholders are wondering if there’s a way to make their credit card debt disappear.
One possible solution is credit card debt forgiveness, which involves working with your creditors to pay off a portion of your debt in a lump sum, with the creditor forgiving the remaining portion of the balance. But while debt forgiveness can offer some relief, it’s not a guaranteed path to financial freedom. There are limitations to this type of debt relief, so before considering this route, it’s essential to understand whether it’s possible to have your credit card debt fully forgiven.
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Can I get all of my credit card debt forgiven?
It’s highly unlikely that you’ll be able to get all of your credit card debt forgiven through debt forgiveness. While it can, in some instances, result in dramatic reductions in your credit card debt, that won’t be the reality for every cardholder.
When you pursue debt forgiveness, either you or the debt relief company you work with tries to negotiate with your creditors to get them to accept a lump sum payment that’s less than the full amount you owe. The idea is that creditors would prefer to receive some payment rather than risk getting nothing if you were to file for bankruptcy or simply default on what you owe. However, creditors are under no obligation to settle, and many are reluctant to forgive large portions of debt, especially if they believe you have the means to pay.
But even if you do manage to settle some of your debts, you’ll still typically have to pay a large portion of what your current balance is. That’s the compromise with debt forgiveness. You pay a portion of your balance in return for the other portion being forgiven. That way, the creditor can recoup at least part of what’s owed on the account. No creditor will simply wipe the slate clean and fully forgive the debt, though — especially if you have a large balance.
Debt forgiveness also typically only works with unsecured debts that are significantly past due. If you’re current on your credit card payments or have only recently fallen behind, your creditors are less likely to consider settlement offers. They may instead suggest other options like hardship programs or payment plans — which could make your debts cheaper by temporarily lowering your interest rates or reducing fees, but that won’t result in any of your balance being “forgiven.”
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How much of my credit card debt can be forgiven?
While getting all of your credit card debt forgiven is unlikely, it is possible to have a portion of your debt reduced by pursuing credit card debt forgiveness. On average, successful debt settlements typically result in a reduction of about 30% to 50% of the original debt amount — though it can be higher in some cases.
For example, if you owe $10,000, you might be able to settle for between $5,000 and $7,000, meaning that somewhere between $3,000 and $5,000 may be “forgiven” by the card issuer. However, it’s important to remember that these figures are not guaranteed, and the results can vary significantly. That’s because the amount of debt forgiveness you qualify for typically depends on several factors, including:
- Your financial situation: If you can demonstrate genuine financial hardship, creditors may be more willing to settle for a lower amount.
- The age and status of the debt: Older debts that are seriously delinquent are often easier to settle.
- The creditor’s policies: Some creditors are more open to debt forgiveness than others.
- Your negotiation skills (or those of your debt relief company): Effective negotiation tactics can potentially lead to better outcomes, which is part of why so many people opt to use a debt relief company. The experts they employ are typically experienced with these types of negotiations, which can increase your chances of a positive outcome.
- The lump sum you can offer: Generally, the more you can pay upfront, the more likely you are to reach a favorable agreement.
It’s also important to factor in the fees charged by debt relief companies if you choose to work with one. These fees can eat into any savings you might achieve through debt forgiveness, sometimes to the point where the benefit becomes negligible.
The bottom line
Debt settlement can provide a path to reduce your credit card debt, but it is not a guaranteed or simple solution. It’s unlikely that you will get all of your debt forgiven, as creditors are usually not willing to wipe out the entire balance. However, if you are facing financial hardship and are at risk of defaulting on your payments, debt settlement could offer a way to reduce the amount you owe, typically by 30% to 50%, which can make it a smart option for the right person.
Bela Karolyi, the charismatic if polarizing gymnastics coach who turned young women into champions and the United States into an international power, has died. He was 82.
A spokesperson for USA Gymnastics confirmed to CBS News by email that Karolyi died Friday. No cause of death was given.
Karolyi and wife Martha trained multiple Olympic gold medalists and world champions in the U.S. and Romania, including Nadia Comaneci and Mary Lou Retton.
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“A big impact and influence on my life,” Comaneci, who was just 14 when Karolyi coached her to gold for Romania at the 1976 Montreal Olympics, posted on Instagram.
The Karolyis defected to the United States in 1981 and over the next 30-plus years became a guiding force in American gymnastics, though not without controversy. Bela helped guide Retton — all of 16 — to the Olympic all-around title at the 1984 Games in Los Angeles and memorably helped an injured Kerri Strug off the floor at the 1996 Games in Atlanta after Strug’s vault secured the team gold for the Americans.
Karolyi briefly became the national team coordinator for USA Gymnastics women’s elite program in 1999 and incorporated a semi-centralized system that eventually turned the Americans into the sport’s gold standard. It did not come without a cost. He was pushed out after the 2000 Olympics after several athletes spoke out about his tactics.
It would not be the last time Karolyi was accused of grandstanding and pushing his athletes too far physically and mentally.
During the height of the Larry Nassar scandal in the late 2010s — when the disgraced former USA Gymnastics team doctor was effectively given a life sentence after pleading guilty to sexually assaulting gymnasts and other athletes with his hands under the guise of medical treatment — over a dozen former gymnasts came forward saying the Karolyis were part of a system that created an oppressive culture that allowed Nassar’s behavior to run unchecked for years.
Still, some of Karolyi’s most famous students were always among his staunchest defenders. When Strug got married, she and Karolyi took a photo recreating their famous scene from the 1996 Olympics, when he carried her onto the medals podium after she vaulted on a badly sprained ankle.
Despite losing his boxing match to Jake Paul, Mike Tyson in a social media post Saturday said he had “no regrets” to getting “in ring one last time.”
The boxing legend was defeated by social media star Jake Paul in a highly anticipated fight on Friday night with an age difference of over three decades between the two contenders.
Netflix said Saturday that 60 million households worldwide tuned in to watch the match. The two fighters went eight full rounds, with each round two minutes long. Paul defeated Tyson by unanimous decision and the 27-year-old upset boxer and 58-year-old former heavyweight champion hugged afterward.
Paul was expected to earn about $40 million from the fight, and Tyson was expected to take around $20 million for the fight, according to DraftKings and other online reports.
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Tyson said on his social media that “this is one of those situations when you lost but still won. I’m grateful for last night.”
The fight almost didn’t happen after Tyson experienced an ulcer flare-up while on a plane in March. He addressed his illness Saturday, writing that he “almost died in June.” He said he had eight blood transfusions and “lost half my blood and 25lbs in hospital and had to fight to get healthy to fight so I won.”
Tyson retired from boxing in 2005 after a 20-year career. He last fought in a 2020 exhibition match against former four-division world champ Roy Jones Jr.
“To have my children see me stand toe to toe and finish 8 rounds with a talented fighter half my age in front of a packed Dallas Cowboy stadium is an experience that no man has the right to ask for. Thank you,” he said.
Alex Sundby and
contributed to this report.
In their final meeting, China’s leader Xi Jinping told U.S. President Biden that his nation was “ready to work with a new administration,” as President-elect Donald Trump prepares to take over.
The two leaders gathered Saturday on the sidelines of the annual Asia-Pacific Economic Cooperation summit. Mr. Biden was expected to urge Xi to dissuade North Korea from further deepening its support for Russia’s war on Ukraine. It marked their first in-person meeting since they met in Northern California last November.
Without mentioning Trump’s name, Xi appeared to signal his concern that the incoming president’s protectionist rhetoric on the campaign trail could send the U.S.-China relationship into another valley.
“China is ready to work with a new U.S. administration to maintain communication, expand cooperation and manage differences so as to strive for a steady transition of the China-U.S. relationship for the benefit of the two peoples,” Xi said through an interpreter.
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Mr. Biden, meanwhile, spoke in broader brushstrokes about where the relationship has gone and reflected not just on the past four years, but on their long relationship.
“Over the past four years, China-U.S. relations have experienced ups and downs, but with the two of us at the helm, we have also engaged in fruitful dialogues and cooperation, and generally achieved stability,” he said.
Mr. Biden and Xi, with top aides surrounding them, gathered around a long rectangle of tables in an expansive conference room at Lima’s Defines Hotel and Conference Center.
There’s much uncertainty about what lies ahead in the U.S.-China relationship under Trump, who campaigned promising to levy 60% tariffs on Chinese imports.
Bobby Djavaheri, president of Los Angeles-based Yedi Houseware Appliances — which manufactures its products in China — told CBS News in an interview this week that such tariffs “would decimate our business, but not only our business. It would decimate all small businesses that rely on importing.”
Trump has also proposed revoking China’s Most Favored Nation trade status, phasing out all imports of essential goods from China and banning China from buying U.S. farmland.
Already, many American companies, including Nike and eyewear retailer Warby Parker, have been diversifying their sourcing away from China. Shoe brand Steve Madden says it plans to cut imports from China by as much as 45% next year.
White House national security adviser Jake Sullivan said Biden administration officials will advise the Trump team that managing the intense competition with Beijing will likely be the most significant foreign policy challenge they will face.
It’s a big moment for Mr. Biden as he wraps up more than 50 years in politics. He saw his relationship with Xi as among the most consequential on the international stage and put much effort into cultivating that relationship.
Mr. Biden and Xi first got to know each other on travels across the U.S. and China when both were vice presidents, interactions that both have said left a lasting impression.
“For over a decade, you and I have spent many hours together, both here and in China and in between. And I think we’ve spent a long time dealing with these issues,” Mr. Biden said Saturday.
But the last four years have presented a steady stream of difficult moments.
The FBI this week offered new details of a federal investigation into Chinese government efforts to hack into U.S. telecommunications networks. The initial findings have revealed a “broad and significant” cyberespionage campaign aimed at stealing information from Americans who work in government and politics.
U.S. intelligence officials also have assessed China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow is using to produce missiles, tanks, aircraft and other weaponry for use in its war against Ukraine.
And tensions flared last year after Mr. Biden ordered the shooting down of a Chinese spy balloon that traversed the United States.
