Credit card debt forgiveness mistakes to avoid in 2026

Credit card debt has gotten out of hand lately, and that's not to mention how expensive it's become. The total credit card debt in the U.S. is now sitting at $1.23 trillion, reflecting an increase of $24 billion compared to the third quarter of 2025 alone. And, the average interest rate on those credit cards? That sits at over 21%, nearly double the rate seen five years ago. So, it doesn't take much for the interest charges to compound quickly.

If you're one of the many borrowers dealing with costly credit card balances right now, 2026 may be the year to explore your options for relief. One option is credit card forgiveness, which is when your card issuer agrees to accept a lump-sum payment for less than you owe and then cancels the remaining balance. 

It might sound too good to be true, but it's a real-life option — and it's one within reach if you come prepared. 

Find out how to start the credit card debt relief process now.

Credit card debt forgiveness mistakes to avoid in 2026

Are you considering credit card forgiveness for your debts this year? If so, make sure to avoid these four mistakes along the way.

Waiting too long to take action

With the Federal Reserve cutting rates in recent months, it might be tempting to hold out hope that credit card rates fall, too. Experts say that's unlikely to happen, though.

"Credit card issuers decide their interest rates according to their own formulas," says Howard Dvorkin, chairman of Debt.com. "They factor in the Fed rate and delinquencies, but also their own customer mix and quarterly financial goals. They're also allergic to economic uncertainty, and we're drowning in it these days. So I don't know if they'll raise rates, but I'm fairly certain they won't drop them."

And, if rates do fall, experts say it likely won't be a substantial dip, so waiting to tackle your debt could be a costly decision.

"While slight declines are possible, credit cards are still expected to be expensive for consumers," says Brit Simon, chief experience officer at National Debt Relief. "Even if the Federal Reserve slows rate increases or begins modest cuts, credit card interest rates tend to remain high. Banks build in wide margins and often do not pass rate reductions quickly."

Chat with a debt relief expert about your options now.

Forgetting the receipts

You will likely need to prove you're going through a financial hardship to qualify for credit card forgiveness, meaning you'll need to prove that you're facing some sort of struggle that makes it impossible to afford your minimum payments.

"You will need a very good financial hardship reason that can be proven, such as loss of job, medical reasons," says Ernie Wingard, a financial representative and marketing director for Capital Choice Financial Group and Wingard Financial. "The more severe the hardship, the more likely you will be successful because the creditor doesn't want to lose everything."

Card issuers probably won't just take your word for it either. Before any card issuer offers partial forgiveness or any sort of hardship option, you will likely need to provide documentation that proves your finances are dire.

"If you were laid off, you might need to email a copy of the termination letter," Dvorkin says. "If you were divorced, you might need to show your divorce decree. Same thing with an illness, a work injury, or a natural disaster. Basically, you need proof that something happened to you that caused a significant loss of income or a massive, unexpected expense."

Continuing to charge on your cards

It can certainly be tempting to keep swiping that plastic, especially with today's rising inflation, tariffs, and the holiday season upon us.

But if you're hoping to explore credit card forgiveness in the near future, cutting off those charges is critical, pros say, and the sooner, the better. 

"Creditors are more willing to negotiate when it is clear that someone cannot realistically keep up with payments," Simon says. "Continuing to add charges increases the balance and weakens the case for hardship."

Dvorkin likens the situation to "trying to take a bath but not closing the drain. No matter how much the water runs, you'll never fill the tub."

Thinking it's a quick and easy solution

Experts say that achieving credit card forgiveness can be challenging, and it's only an option for borrowers who are truly struggling. 

"Debt forgiveness is relatively rare and is typically treated as a last resort for lenders," says Kim Chambers, credit card product manager for Georgia's Own Credit Union. "It generally is not an option for accounts that are only slightly past due. Instead, it's a negotiation that occurs once an account has moved into a more serious stage of delinquency. Success is most likely when a cardholder can document a genuine financial hardship."  

If you're experiencing such a hardship, you can either negotiate with creditors directly or work with a debt relief company to handle the process for you. Either way, it can take a while — up to four years in some cases, Simon says. 

The bottom line

Forgiveness isn't the only option if you're dealing with lots of credit card debt. You can explore credit counseling, get professional budgeting help, try a debt payoff strategy (like the snowball or avalanche methods), or consider a debt management plan. You can also contact a debt relief company or speak to a financial professional for more options.