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Will credit card debt forgiveness cover my $10,000 debt?
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Carrying any amount of credit card debt from month to month can lead to serious financial challenges. After all, as interest builds, the minimum payments barely make a dent in the principal, making it hard to keep up with your financial obligations. The average cardholder owes about $8,000 currently, but for someone with $10,000 or more in credit card debt, the financial pressure could be even greater — making day-to-day expenses difficult to manage and future financial goals seem out of reach.
That’s why many cardholders who are carrying a hefty balance will try to find ways to reduce or eliminate their debt and one option that often comes up is credit card debt forgiveness, also known as debt settlement. When you pursue debt forgiveness, the goal is to negotiate with your creditors, either on your own or with the help of a debt relief company, to try and reduce the total balance owed.
And, when successful, debt forgiveness can provide significant relief, cutting credit card debt by 30% to 50% or more on average. For someone facing $10,000 in credit card debt, this can seem like an appealing option, as paying less than the full amount owed can be a big help for those who are unable to keep up with payments. But while it can be a useful tool, it’s not a guaranteed fix. So, will credit card debt forgiveness cover your $10,000 debt? That’s what we’ll analyze below.
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Will credit card debt forgiveness cover my $10,000 debt?
Yes, credit card debt forgiveness could potentially reduce your $10,000 debt, but there’s no guarantee that it will. For a $10,000 debt, you might be able to settle for a lower amount — potentially between $5,000 and $7,000 based on the averages — but it ultimately depends on several factors. Not all debts are settled or significantly reduced during the debt forgiveness process and it’s important to understand the variables involved.
One crucial factor is the willingness of your creditor to negotiate. Each credit card issuer has its policies regarding debt forgiveness and some may be more open to accepting a reduced lump-sum payment if they believe that recovering a portion of the debt is better than getting nothing if the debt becomes uncollectible.
The age of your debt also matters. For example, creditors may be more willing to settle older accounts that have gone unpaid for a long time. When it comes to newer debts, though, the creditor might push for full repayment before considering a settlement offer.
Another factor that plays a major role in debt forgiveness is your financial situation. Creditors are more likely to agree to a settlement if you can demonstrate financial hardship and prove that paying the full amount is not feasible. Providing evidence of your inability to repay the full balance can strengthen your case for debt forgiveness.
The success of debt forgiveness also depends heavily on the negotiation skills of the debt relief company or your ability to communicate and negotiate effectively with your creditors. Debt relief companies often have experience navigating these conversations, which can increase the odds of a successful settlement, which is why so many cardholders ultimately opt to use one during this process.
Compare your debt relief options here.
Alternatives to credit card debt forgiveness
If credit card debt forgiveness doesn’t seem like the right fit for your $10,000 debt, there are other strategies you can explore to try and reduce your balance. One is debt consolidation, which involves taking out a new loan with a new (ideally lower) interest rate to pay off multiple credit card balances, combining them into a single monthly payment. That can simplify your payments, reduce the interest charges you pay and make it easier to track your progress.
Another option is to transfer your $10,000 balance to a credit card that offers a 0% APR introductory period on balance transfers. Some cards offer 0% interest during the promotional period, which is typically for 12 to 21 months, giving you time to pay down the principal without additional interest charges. This can significantly reduce the cost of paying off your debt, but it’s important to pay off as much as possible before the introductory period ends, as the interest rate will increase afterward.
For those facing extreme financial hardship, bankruptcy might also be an option to consider. Both Chapter 7 and Chapter 13 bankruptcy can provide relief from overwhelming debt but also come with significant consequences, including a lasting negative impact on your credit. As a result, bankruptcy should be viewed as a last resort.
The bottom line
Credit card debt forgiveness can potentially reduce a $10,000 debt, but it’s not guaranteed. Before committing to a debt forgiveness plan, it’s important to fully understand the process and also consider alternatives. Each option has its pros and cons and the best approach typically depends on your financial situation and long-term goals.
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.
