Who qualifies for credit card debt forgiveness?

MoneyWatch: Managing Your Money Who qualifies for credit card debt forgiveness? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Joshua Rodriguez Joshua Rodriguez Writer, Personal Finance Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he's not working, he enjoys time with his wife, two kids and two dogs. Read Full Bio Joshua Rodriguez Updated on: May 6, 2026 / 2:57 PM EDT / CBS News Add CBS News on Google You don't have to live with overwhelming credit card debt. You have options. Getty Images Inflation is surging again. That's according to a new report from the Bureau of Labor Statistics, showing the rate at 3.3%, the highest it has been in multiple years. That's left food prices, as well as other basic living expenses, running substantially higher than they were just a year ago. That combination of issues has left millions of Americans leaning harder on credit cards just to cover the basics. So, while carrying a balance used to be an occasional inconvenience, it's increasingly becoming a way of life for many borrowers. With credit card interest rates over 20%, however, and interest compounding daily, this can be a financially risky approach to take.But there's a point at which carrying a balance tips from manageable to genuinely dangerous — typically when minimum payments start to feel out of reach, and interest charges are outrunning any real progress on the principal. That's when borrowers often start asking about credit card debt forgiveness, which is a process that involves negotiating directly with a creditor or debt collector to settle an account for less than what's owed. If successful, a reduced lump-sum payment closes out the debt entirely.That can sound like a lifeline, and for some people it is. But d...