Credit Card Debt Forgiveness

Credit Card Debt Forgiveness

Are you in credit card debt?  If so, you are not alone.  Credit card debt is on the rise, and it is growing.  Take a look at this CNBC story to see the rise.  Credit card debt forgiveness is also increasing.  But how?  Why?  Credit card debt that cannot be repaid is a problem.  If you can't pay it you have limited options.  One of them, however, is to ask for the debt to be forgiven.  Even if only part of it.

Credit card debt forgiveness is available directly through creditors.  Asking a credit card company to forgive your debt is a simple ask.  Getting the debt actually forgiven, though, is a different issue.  This recent US News article elaborates the varied aspects of asking your credit card debt to be eliminated or reduced.

If credit card debt forgiveness is offered, there is a catch.  The IRS.  Whatever credit card debt is eliminated is deemed income by the IRS.  You will receive a 1099 for whatever amount of credit card debt you can be reduce or eliminate.

Beware, too, of all debt consolidators.  They are often scams.  Credit card debt forgiveness  in this manner, as such, is rarely worthwhile.  The cons outweigh the pros.

Bankruptcy, therefore, may be a better option for credit card debt forgiveness.  Bankruptcy is a negative on your credit.  It can, however, eliminate your debt, and that is a positive.  It's tax-free, too.  Forgiveness of debt through bankruptcy is not a taxable event.  If you discharge debt in bankruptcy there is no tax to pay.  It's also not a scam like many debt consolidators.  It is a reliable option for those unable to pay their debt.

If you cannot pay your credit cards or other debts, there is already an impact to your credit.  Bankruptcy, therefore, may actually improve your credit by eliminating your debt. Contact my office for a free consultation and see where your options stand.  You have nothing to lose but debt.