Debt settlement programs are centered around negotiations with your creditors, which are done in an attempt to get them to accept less money than you owe on your debt. During the process, part of the debt is settled and forgiven — which is why many call debt settlement a debt forgiveness program. 

But while debt forgiveness can be effective, it can also take some time. After all, it’s unlikely that a creditor will forgive 100% of the amount you owe. Instead, these settlements typically result in a portion of what you owe being forgiven. 

You’ll still have to pay off the remainder of your debt before your debt is fully settled, which may be tough to do immediately. So, how long does debt forgiveness take?

Tap into the relief you need with a credit card debt forgiveness program now. 

How long does credit card debt forgiveness take?

As noted, debt forgiveness is generally the result of a debt relief service known as debt settlement. For example, say you sign up for a debt settlement service with $12,000 in credit card balances and the service is able to negotiate a 50% settlement with your lenders. In this case, your lenders will forgive half of the amount you owe, but you’ll still be required to pay $6,000. 

Moreover, since debt settlement is typically a service for those who are struggling to make their minimum payments, chances are you won’t have $6,000 immediately available to settle your debts. It will likely take some time for you to be able to pay that amount. But how long?

According to Freedom Debt Relief, the entire debt relief process usually takes anywhere from 24 to 48 months. Here are the factors that play the biggest role in the time it could take to settle your debts: 

The amount of money you owe

Debt settlement companies work to help you pay your debts off as quickly as possible. One of the most significant factors in doing so is the debt itself. It will generally take consumers longer to pay off $20,000 in credit card debt than it will take to pay off $10,000. The goal of these programs is to settle your debt for a portion of what you owe — but you can still expect to pay to settle larger debts, which can take some time. 

Find out how quickly your debt could be forgiven today. 

The payments you can afford to make

In most cases, you’re looking into credit card debt forgiveness because you’re having a difficult time making your credit card payments. The good news is that debt settlement companies usually consider this when they create your payment plan, which is aimed at getting you out of debt as quickly and affordably as possible. So, the amount of money you can afford to pay each month will play a role in the amount of time it takes to settle your debts. 

Using the example above, you would be responsible for $6,000 in debt rather than $12,000. If you could afford to pay $300 per month, you could theoretically pay the settlement off in under two years. On the other hand, if you could only afford to pay $125 per month, it would take four years to settle your debt. 

The company you work with

The company you work with to get your credit card debt forgiven also plays a role in how long it takes to settle your debts. Here’s why: 

• Fees: “Debt settlement companies often charge fees for their services, which can eat into the savings you achieve through debt settlement,” says Jordan Mangaliman, CEO of Goldline Financial Services. “Additionally, creditors may also charge fees or penalties for settling your debts.” This can extend the time it takes to complete your settlement. 
• Negotiations: Some debt settlement companies may be better at negotiations than others. The better the settlement deal is, the faster you’re likely to pay off your debt. So, you’ll probably pay your debts off faster when you work with a reputable debt relief company that has a history of successful negotiations than you would working with a less reputable provider.  

Why you should enroll in debt relief now

When borrowers can’t afford their credit card minimum payments, they may, in some cases, give up on their debts and completely stop sending payments. That can be a mistake. 

Here’s why you should seek debt relief rather than giving up altogether: 

• Annoying calls: The debt collection process typically starts with phone calls and letters. 
• Lawsuits: If your credit card debt goes unaddressed for too long, your lenders may take you to court in search of a judgment. 
• Garnishments: If your creditors win a judgment, you could face bank account, paycheck and tax return garnishments.
• Property liens: Some creditors may even put a lien on your property until you pay your debt in full following a judgment. 

These outcomes are typically avoidable. Reach out to a debt relief expert to discuss your options now if you’re having a hard time making your minimum payments. 

The bottom line

Credit card debt forgiveness usually takes anywhere from two to four years on average. However, that time frame may vary depending on the amount of debt you owe, how much money you can afford to pay per month and the company you work with. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, three dogs and 10 ducks.