Getty Images
Holiday expenses This year is expected to increase from what it was in 2023. And it’s not like last year was exactly cheap, with consumers expected to spend 7% more than then, bringing the projected new average to around $2,100. But for those who are expected to pay for it via credit card, that can be problematic.
The average American has about $8,000 in credit card debt currently. With the the average credit card interest rate has increased recently to about 23% – a record high – means many Americans are already struggling with debt. And that’s before the bulk of their Christmas shopping is even done.
Against this backdrop, many credit card users may be considering their own credit card options for debt relief. An effective way to reduce your debts is cancellation of credit card debt. But should you apply for this option before the holidays or is it better to wait until January? That’s what we’ll explore below.
Find out how much of your debt a forgiveness program could help here.
Should you apply for credit card debt forgiveness before the holidays?
The short answer is: it depends. If you find yourself in a position where you have exhausted all your alternative debt relief options and are unable to repay your credit card debt, then forgiveness may be worth exploring immediately, even before the holidays begin. Waiting to ask for relief can be a costly mistake, especially if you plan to increase your credit card spending during the season, as many Americans plan to do.
On the other hand, canceling credit card debt is not an overnight solution. It can take years before it is effective and even then it will probably just disappear somewhere in between 30% to 50% of your outstanding balance. So it’s wise to pursue this option if you’re in a tough situation – and if your expenses can be legitimately limited. If you know you need To increase your credit card debt, at least for November and December, it may be more beneficial to wait until a time when you can afford to stop swiping your card.
All this said, every credit card user’s experience is different and there may be exceptions to this broad advice. If you are not sure what applies to you, it is wise to first speak to a financial advisor for advice. Also consider talking to a debt counselor, even if they have already done so a financial incentive to let you set up a service. So keep that in mind when speaking to a representative.
Start exploring your options for credit card debt forgiveness online today.
How to qualify for credit card debt forgiveness
Not everyone with a credit card balance can secure forgiveness. Users will need that qualify for help and even then it will take time to reduce your debt (assuming you don’t add anything to it in the meantime). Here are three important qualifications for credit card debt forgiveness that you should know:
Minimum debt: Most credit card debt forgiveness service providers will not work with you if your debt is less than $7,500. In these cases, the debt is largely considered manageable and other alternative debt relief options may be more helpful. That said, if you have a debt of € $10,000 or moreForgiveness of credit card debt could provide crucial support.
Financial problems: Is there a specific reason behind your inability to pay back everything you borrowed? If you can prove that you are in financial difficulties that prevent you from paying anything (even minimum payments), you can increase your chances. Examples of financial problems include, but are not limited to, job loss and health problems.
Do not pay: It may seem counterintuitive, but if you have already stopped making your credit card payments or are already in the process collectionsthis can help improve your qualification chances. This shows a true inability to pay your bills, which many credit card debt forgiveness providers would like to see before agreeing to help.
The bottom line
Applying for credit card debt forgiveness is a personal decision, weighed heavily by your unique qualifications and financial situation. But if you need help and know you can’t get out of your financial hole, there’s no point in putting it off, even with the holidays approaching. By taking action now, you can start improving your credit and work toward regaining your financial freedom in the new year.
Read more about credit card debt forgiveness here.