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Have $7,500 in credit card debt? Here’s what debt forgiveness could cover.
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While experts have long cautioned against carrying a credit card balance from month to month, the current economic landscape has made this advice increasingly difficult to follow. While inflation is down significantly, the higher costs for essential items like groceries and housing have continued to strain household budgets, forcing many to rely more heavily on credit cards to pay for the necessities.
As a result, credit card balances are growing — but it’s not just an uptick in spending that’s causing it. More people are relying on short-term borrowing to cover their essentials, but the average credit card interest rate is also hovering around 23%, and that’s causing the compound interest charges to rack up quickly. In turn, many cardholders are finding it difficult to stay current with their monthly payments.
Luckily, there are solutions to consider, like credit card debt forgiveness, which can offer a potential way out of this financial spiral. With a debt forgiveness program, the goal is to get some relief from your high-rate debts by negotiating with your creditors to reduce the total amount owed. And if you’re carrying $7,500 in credit card debt, understanding how much a forgiveness plan can reduce your debt is key to deciding if it’s the right solution for you.
Take steps to get rid of your card debt now.
How much of a $7,500 credit card debt will a forgiveness plan cover?
In many cases, debt forgiveness programs can significantly reduce the total amount of credit card debt you owe, but it’s important to understand how much relief you might actually get. Typically, these programs allow you to settle your debt for 30% to 50% less than the original amount, meaning that for a $7,500 credit card balance, you could negotiate to pay between $3,750 and $5,250.
However, the amount of debt forgiveness you receive is often tied to your financial situation. For example, creditors are more likely to agree to a settlement if they believe it’s their best chance of recovering a portion of what they’re owed. Borrowers facing significant financial hardship, such as unemployment, medical bills or other major financial setbacks, are more likely to see favorable terms.
Most debt relief companies also require you to have a minimum debt amount, often around $7,500, to qualify for these programs. So, if you have $7,500 in credit card debt you’re trying to get rid of, you will likely qualify. But even if you meet this requirement, successful negotiations aren’t guaranteed and creditors aren’t obligated to agree to a settlement.
It’s also important to note that you typically need to be behind on your payments before creditors will consider a settlement. That’s because creditors prioritize delinquent accounts, as borrowers who are still current on their payments are seen as less likely to default entirely. However, missing payments can have serious consequences, including damage to your credit score, collection efforts and additional fees, so it’s important to weigh the potential benefits versus the cost before enrolling.
And while the potential savings from a debt forgiveness program can be substantial, they come with another price tag: higher taxes. The IRS considers the forgiven amount taxable income, meaning you could owe taxes on the portion of the debt that’s written off. For instance, if $3,000 of your $7,500 debt is forgiven, you might be required to report that amount as income on your tax return.
Compare your debt relief options here.
What options do I have if I don’t qualify?
If debt forgiveness isn’t the right fit for your situation, several alternative debt relief options exist, including:
Debt consolidation
With debt consolidation, you’re combining your credit card balances into a single loan with a lower interest rate. This approach can:
- Simplify your monthly payments
- Reduce your overall interest costs
- Provide a clear timeline for becoming debt-free
Balance transfer cards
Many credit cards offer introductory 0% APR periods for a set period, typically 12-21 months, allowing you to:
- Pause interest accumulation temporarily
- Focus on paying down the principal balance
- Make faster progress on debt reduction
Debt management
By working with a credit counseling agency on a debt management plan, you can:
- Negotiate lower interest rates
- Create a structured repayment plan
- Receive professional guidance throughout the process
- Potentially have fees waived
The bottom line
While a $7,500 credit card balance can present significant financial challenges, multiple debt relief options exist. Debt forgiveness programs can potentially reduce your balance by 30% to 50%, but that’s not the only solution. When you’re dealing with this type of challenge, it makes sense to consider all available options, including debt consolidation, balance transfers and debt management plans, to determine which approach best aligns with your financial situation and goals.
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How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
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The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
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How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
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The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.