Inflation fell in September after hitting a 3-year low in August. Unemployment numbers are low and the Federal Reserve just issued its first interest rate cut in more than four years. While these are all encouraging signs for the broader economy, it will take some time for consumers to recover from recent financial troubles. It wasn’t that long ago that inflation was at a decades-high and interest rates are still exponentially higher than they were just a few years ago.

Against this backdrop, credit card debt has surged with the average user now owing approximately $8,000 to their lenders. And with the average credit card interest rate hovering near a record 23%, it will take a long time and a concentrated effort to reduce that balance. For many borrowers, it may make sense to pursue debt relief, specifically credit card debt forgiveness. However, there are some limits to what this service can do for borrowers. So, will credit card debt forgiveness cover a $25,000 debt? 

See how debt relief can help reduce what you owe here now.

Will credit card debt forgiveness cover my $25,000 debt?

In short: yes, a credit card debt forgiveness program can cover your $25,000 debt. The minimum balance for this type of service is typically $7,500. But that doesn’t mean you’ll get your entire balance wiped clean. Credit card debt forgiveness programs typically cover 30% to 50% of the existing balance. So, in this circumstance, you may be able to settle for between $7,500 and $12,500. But you’ll need to qualify for that relief. Specifically, most companies will want you to provide all of the following:

• Debt over $7,500: This applies in this circumstance but if you owe less than that amount you may be better served by turning to a debt relief alternative.
• Financial hardship: If you can demonstrate you’re currently experiencing a financial hardship that’s preventing you from paying your balance, you can improve your chances of approval. This means showing the loss of a job, medical expenses, or more. You’ll need to provide documentation demonstrating this hardship.
• Behind on payments: You’re more likely to get help with forgiving a balance if you’re already behind on your monthly payments. If you’ve been staying up to date, even if with minimal payments, creditors are less likely to help, since that typically demonstrates an ability to make payments, just at a slower pace.

If you currently qualify for forgiveness then consider contacting a servicer now. With credit card rates high and predicted rate cuts unlikely to make a material difference in what you owe, it makes sense to be proactive.

Start tackling your high-rate credit card debt now.

What about a debt consolidation loan?

Credit card interest rates are high now but personal loans are much lower (averaging just under 13% compared to credit card rates at 23%). It can be beneficial for many borrowers to then consolidate their existing credit card debt with a lower-rate consolidation loan. Rates will depend on your credit score and profile but, if your score is high, you will likely qualify for a low-rate loan. This won’t eliminate a portion of your debt like a forgiveness plan would, but you also won’t have to deal with the credit score ramifications that most forgiveness plans result in, either.

The bottom line

If you meet certain criteria, a credit card debt forgiveness program can cover a $25,000 balance. But it won’t cover it in its entirety. And, in many cases, borrowers may be better served by exploring alternatives like debt consolidation loans. No matter which option you ultimately choose, however, don’t let your debt stagnate, particularly at today’s elevated. Explore all of your best debt relief options and choose the one that works best for your financial situation right now.

The Nebraska Supreme Court ruled Wednesday that a top election official had no authority to declare unconstitutional a state law that restored the voting rights of those who have been convicted of a felony, issuing a decision with implications for the upcoming election.

In July, Nebraska Secretary of State Bob Evnen ordered county election officials to reject voter registrations of those with felony convictions, citing an opinion by Attorney General Mike Hilgers. That opinion, which Evnen had requested, deemed as unconstitutional a law passed this year by the Legislature immediately restoring the voting rights of people who have completed the terms of their felony sentences.

Evnen’s order could have prevented 7,000 or more Nebraska residents from voting in the upcoming election, the American Civil Liberties Union said. Many of them reside in Nebraska’s Omaha-centered 2nd Congressional District, where both the race for president and Congress could be in play.

In an otherwise reliably red state that, unlike most others, splits its electoral votes, the 2nd District has twice awarded an electoral vote to Democratic presidential candidates — once to Barack Obama in 2008 and again to Joe Biden in 2020. In a presidential race shown by polling to be a dead heat, a single electoral vote could determine who wins.

Because of the Omaha district’s history, Democratic presidential nominee Kamala Harris and Democratic groups have spent millions in the district in the hopes of securing the electoral vote — far more than former President Donald Trump and Republican groups.

The last day to register to vote for the 2024 general election in Nebraska is Oct. 25, and it must be done in person at a voter’s county election commission office. Election Day is Nov. 5.

Hilgers′ opinion had said the new law violates the state constitution’s separation of powers, saying only the state Board of Pardons under the control of the executive branch can restore voting rights through pardons.

Pardons are exceedingly rare in Nebraska. Evnen, Hilgers and Gov. Jim Pillen make up the three-member Board of Pardons. All three are Republicans.

The opinion also found unconstitutional a 2005 state law that restored the voting rights of people with felony convictions two years after they complete the terms of their sentences.

The ACLU is representing advocacy group Civic Nebraska and two Nebraska residents, a Republican and an independent, who would be denied the right to vote under Evnen’s directive. Because Evnen’s move came only weeks ahead of the November election, the ACLU asked to take the lawsuit directly to the Nebraska Supreme Court, and the high court agreed.

Restoring the voting rights of former felons has drawn national attention in recent years. In Florida, lawmakers weakened a 2018 voter-approved constitutional amendment to restore the voting rights of most convicted felons. Following that, an election police unit championed by Republican Gov. Ron DeSantis arrested 20 former felons. Several of them said they were confused by the arrests because they had been allowed to register to vote.

In Tennessee, lawmakers killed a bipartisan bill this year that would have let residents convicted of felonies apply to vote again without also restoring their gun rights.

Dozens of states allow people living with felony convictions to vote, either for those not currently in prison or upon completion of their sentences. Two states, Maine and Vermont, allow everyone, even those in prison, to vote. But despite a recent trend toward restoration of rights, felony disenfranchisement laws prevent around 5.85 million people across the country from voting, according to the ACLU.

Felony disenfranchisement laws date to the Jim Crow era and mainly targeted Black people, according to experts. Black registered voters have an overwhelmingly positive view of Harris, according to a recent poll from the AP-NORC Center for Public Affairs Research.