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Credit card debt forgiveness: Is it possible?

Credit card debt forgiveness occurs when creditors agree to permanently cancel part of a borrower's debt due to significant financial hardship.
Individuals typically seek debt forgiveness after facing hardships like medical emergencies or income loss, and they can negotiate directly or use debt resolution services.
Alternatives to debt forgiveness include filing for bankruptcy under Chapter 7 or 13 or consolidating debts to simplify payments without erasing debt.
Debt settlement companies negotiate reduced payments but may harm credit scores and incur fees, while forgiven debt may be taxable unless the debtor is insolvent.
Pursuing debt forgiveness or settlement can lower monthly payments and ease financial strain, but it requires careful evaluation of risks, including long-term credit impact.

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Forbes

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Best Bankruptcy Alternatives In 2025

Overwhelming credit card balances, medical bills, or other debts can feel like a financial trap with no escape. Bankruptcy may seem like the only way out, but its long-term consequences—like a major credit score hit and challenges securing loans in the future—are worth avoiding if possible. The

2 days ago·United States

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Montana Standard

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Credit card debt forgiveness: Is it possible?

Achieve outlines how you might be able to resolve your debt without having to pay the full amount you owe.

3 days ago

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nerdwallet.com

What Is Debt Settlement and How Does It Work? - NerdWallet

Debt settlement "settles" your unsecured debt for less than you owe, but it will damage your credit among other risks. Learn how settlement works and explore alternatives.

3 days ago

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