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Have $10,000 in credit card debt? Here’s how much debt forgiveness could cover.
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With credit card interest rates sitting at an all-time high of about 23% on average, it’s no surprise that many people are struggling to keep up with their monthly credit card payments. After all, the average American carries approximately $8,000 in credit card debt and with interest charges being calculated at today’s high interest rates, it’s surprisingly easy to find yourself trapped in a cycle of credit card debt with no end in sight.
Today’s high credit card rates aren’t the only issue, though. There are other economic challenges at play, too, like inflated housing and grocery prices leftover from years of high inflation. With the essentials taking up even more space in people’s budgets, many people have found themselves strapped for cash recently. That, in turn, has led more people to turn to this type of short-term borrowing to make ends meet, resulting in an uptick in credit card usage.
But even if you owe more than the average — let’s say $10,000 or more — there are options, like credit card debt forgiveness, that can help you reduce your credit card debt burden. With debt forgiveness, the goal is to come to an agreement with your card issuers to reduce the total balance in return for a lump-sum payment on the account. But how much of that $10,000 in credit card debt could be forgiven?
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How much of a $10,000 credit card debt will a forgiveness plan cover?
Credit card debt forgiveness won’t erase your entire debt, at least not in most cases. So, if you’re hoping to walk away completely debt-free, you may need to consider more drastic measures like filing for bankruptcy, though this comes with long-lasting consequences. On the other hand, debt forgiveness is a less damaging option for reducing your debt load.
Typically, credit card debt forgiveness programs result in settlements that reduce your outstanding balance by 30% to 50%. This means that if you have $10,000 in credit card debt, you could end up paying back anywhere from $5,000 to $7,000, on average. This is a significant reduction that could provide some breathing room in your budget. But it’s important to know that qualifying for debt forgiveness isn’t automatic.
To qualify for debt forgiveness, most companies require you to have at least $7,500 in credit card debt. That means if you’re dealing with $10,000, you’re likely already eligible, but being eligible doesn’t guarantee approval. You’ll also need to prove that you’re facing financial hardship — such as a job loss, a serious medical issue or another significant financial setback — that makes it difficult for you to keep up with your credit card payments.
So, if you’ve been making the minimum payments on your credit card on time each month, you might not be viewed as an ideal candidate for debt forgiveness, even though the minimum payments will barely reduce your balance. Lenders tend to prioritize working with borrowers who are behind on their payments, as this signals greater financial distress.
That means missing a few payments can improve your chances of qualifying for debt forgiveness, though there are obvious (and serious) financial repercussions of doing so. If you meet the lender’s qualifications, however, you could significantly reduce your balance and potentially work out a settlement that lowers your credit card debt to a more manageable level.
Compare your debt relief options here.
Other debt relief options to consider
While credit card debt forgiveness can be a helpful tool, it’s not the only debt relief option available to you. If you’re not a good candidate for debt forgiveness or if you want to explore other ways to reduce your credit card balance, consider alternatives such as:
- Debt consolidation loans: These loans can help combine multiple debts into one loan with a lower interest rate, making your debt cheaper and expediting the repayment process.
- Debt management programs: Debt management programs help you create a structured repayment plan that can lower interest rates and fees, helping you pay off debt faster.
- Balance transfer credit cards: These cards offer a low or 0% introductory interest rate, allowing you to transfer your balance and save on interest costs for a set period (typically 12 to 21 months).
The bottom line
For those grappling with $10,000 or more in credit card debt, debt forgiveness can be a helpful way to reduce the amount owed, though it likely won’t erase the full balance. But while the right debt forgiveness program can help cut down on your credit card debt, it’s still essential to explore all available options, including debt consolidation, debt management and balance transfers, to determine which makes the most sense for you. And, depending on the specifics of your unique situation, it may also help to seek advice from a debt relief specialist to find the best path forward.
Roger Carstens, the Biden administration’s top official for freeing Americans held overseas, on Friday arrived in Damascus, Syria, for a high-risk mission: making the first known face-to-face contact with the caretaker government and asking for help finding missing American journalist Austin Tice.
Tice was kidnapped in Syria 12 years ago during the civil war and brutal reign of now-deposed Syrian dictator Bashar al-Assad. For years, U.S. officials have said they do not know with certainty whether Tice is still alive, where he is being held or by whom.
The State Department’s top diplomat for the Middle East, Barbara Leaf, assistant secretary of state for Near Eastern Affairs, accompanied Carstens to Damascus as a gesture of broader outreach to Hay’at Tahrir al-Sham, known as HTS, the rebel group that recently overthrew Assad’s regime and is emerging as a leading power.
Near East Senior Adviser Daniel Rubinstein was also with the delegation. They are the first American diplomats to visit Damascus in over a decade, according to a State Department spokesperson.
They plan to meet with HTS representatives to discuss transition principles endorsed by the U.S. and regional partners in Aqaba, Jordan, the spokesperson said. Secretary of State Antony Blinken traveled to Aqaba last week to meet with Middle East leaders and discuss the situation in Syria.
While finding and freeing Tice and other American citizens who disappeared under the Assad regime is the ultimate goal, U.S. officials are downplaying expectations of a breakthrough on this trip. Multiple sources told CBS News that Carstens and Leaf’s intent is to convey U.S. interests to senior HTS leaders, and learn anything they can about Tice.
Rubinstein will lead the U.S. diplomacy in Syria, engaging directly with the Syrian people and key parties in Syria, the State Department spokesperson added.
Diplomatic outreach to HTS comes in a volatile, war-torn region at an uncertain moment. Two sources even compared the potential danger to the expeditionary diplomacy practiced by the late U.S. Ambassador Christopher Stevens, who led outreach to rebels in Benghazi, Libya, in 2012 and was killed in a terrorist attack on a U.S. diplomatic compound and intelligence post.
U.S. special operations forces known as JSOC provided security for the delegation as they traveled by vehicle across the Jordanian border and on the road to Damascus. The convoy was given assurances by HTS that it would be granted safe passage while in Syria, but there remains a threat of attacks by other terrorist groups, including ISIS.
CBS News withheld publication of this story for security concerns at the State Department’s request.
Sending high-level American diplomats to Damascus represents a significant step in reopening U.S.-Syria relations following the fall of the Assad regime less than two weeks ago. Operations at the U.S. embassy in Damascus have been suspended since 2012, shortly after the Assad regime brutally repressed an uprising that became a 14-year civil war and spawned 13 million Syrians to flee the country in one of the largest humanitarian disasters in the world.
The U.S. formally designated HTS, which had ties to al Qaeda, as a foreign terrorist organization in 2018. Its leader, Mohammed al Jolani, was designated as a terrorist by the US in 2013 and prior to that served time in a US prison in Iraq.
Since toppling Assad, HTS has publicly signaled interest in a new more moderate trajectory. Al Jolani even shed his nom de guerre and now uses his legal name, Ahmed al-Sharaa.
U.S. sanctions on HTS linked to those terrorist designations complicate outreach somewhat, but they haven’t prevented American officials from making direct contact with HTS at the direction of President Biden. Blinken recently confirmed that U.S. officials were in touch with HTS representatives prior to Carstens and Leaf’s visit.
“We’ve heard positive statements coming from Mr. Jolani, the leader of HTS,” Blinken told Bloomberg News on Thursday. “But what everyone is focused on is what’s actually happening on the ground, what are they doing? Are they working to build a transition in Syria that brings everyone in?”
In that same interview, Blinken also seemed to dangle the possibility that the U.S. could help lift sanctions on HTS and its leader imposed by the United Nations, if HTS builds what he called an inclusive nonsectarian government and eventually holds elections. The Biden administration is not expected to lift the U.S. terrorist designation before the end of the president’s term on January 20th.
Pentagon spokesperson Pat Ryder disclosed Thursday that the U.S. currently has approximately 2,000 US troops inside of Syria as part of the mission to defeat ISIS, a far higher number than the 900 troops the Biden administration had previously acknowledged. There are at least five U.S. military bases in the north and south of the country.
The Biden administration is concerned that thousands of ISIS prisoners held at a camp known as al-Hol could be freed. It is currently guarded by the Syrian Democratic forces, Kurdish allies of the U.S. who are wary of the newly-powerful HTS. The situation on the ground is rapidly changing since Russia and Iran withdrew military support from the Assad regime, which has reset the balance of power. Turkey, which has been a sometimes problematic U.S. ally, has been a conduit to HTS and is emerging as a power broker.
A high-risk mission like this is unusual for the typically risk averse Biden administration, which has exercised consistently restrained diplomacy. Blinken approved Carstens and Leaf’s trip and relevant congressional leaders were briefed on it days ago.
“I think it’s important to have direct communication, it’s important to speak as clearly as possible, to listen, to make sure that we understand as best we can where they’re going and where they want to go,” Blinken said Thursday.
At a news conference in Moscow Thursday, Russian President Vladimir Putin said he had not yet met with Assad, who fled to Russia when his regime fell earlier this month. Putin added that he would ask Assad about Austin Tice when they do meet.
Tice, a Marine Corps veteran, worked for multiple news organizations including CBS News.
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