4 ways to have your credit card debt forgiven this February

When it comes to credit card debt, the numbers are staggering. Americans currently hold over $1.23 trillion in credit card debt, the latest record high, with the average cardholder carrying a total balance of about $8,000 across their credit cards. Credit card balances didn't get this high overnight, though. Over the last few years, a mix of economic hurdles, like rapidly rising prices caused by sticky inflation, has helped to drive borrowers' reliance on credit cards upward and high average credit card rates have further propelled cardholders' balances upward. 

But as card balances grow while budgets are stretched thin, it can become increasingly difficult to find a way out, especially via traditional repayment strategies. Part of the issue is that many cardholders assume that there's only one way to deal with their growing credit card debt, and that's grinding through years of payments while the interest charges continue to compound. That can keep people from looking for alternative solutions, even as their balances grow. 

What they don't realize, though, is that there are legitimate ways to reduce or even eliminate portions of your credit card debt. What exactly are your options for doing this right now, though? Below, we'll detail four to consider this February.

Find out what credit card debt relief options you qualify for now.

4 ways to have your credit card debt forgiven this February

If your credit card debt has become genuinely unmanageable, it helps to know the main strategies that could help you reduce or eliminate what you owe:

Negotiate settlements on your own

You don't necessarily need to hire a professional to help negotiate your debt. If you're already behind on your credit card payments and have access to a lump sum of money, even if it's only a percentage of what you owe, you may be able to work out a settlement by calling your creditors directly, explaining your situation and providing proof of your hardship, whether that's a job loss, a decline in your income, a serious medical issue or something else entirely. 

This can work because creditors know that getting a partial payment is better than getting nothing at all when you're facing serious financial issues, and they may be especially eager to settle if filing for bankruptcy seems like a real possibility. The key, though, is to be persistent and prepared with information about both your situation and the settlements you're prepared to make. 

Learn how to start settling your debt for less today.

Enroll in a debt settlement program

If you're not prepared to negotiate on your own or don't have the money on hand for lump-sum settlements, working with a debt relief company could be the better route to consider. When you choose this option, a debt relief expert will handle the settlement negotiation process with your creditors from start to finish, which generally results in paying 30% to 50% less than the full balance (on average). 

It's important to note, though, that the debt relief company will charge fees in return for helping with the debt forgiveness process. These fees vary, but are generally between 15% to 25% of the enrolled debt. So, it can be expensive, especially compared to the DIY approach.

File for bankruptcy

You also have the option to file for bankruptcy to reduce some (or all) of your credit card debt in the process. Chapter 7 bankruptcy wipes out most unsecured debts, including credit cards, in about four to six months if you qualify based on income requirements. This essentially gives you a financial reset button and a clean slate. The moment you file, collection calls stop, lawsuits halt and wage garnishments end, which can provide serious relief if you've been drowning in debt.

However, it comes at a steep cost to your credit score, one that will last seven to 10 years. You'll also need to complete credit counseling before filing, and you may have to give up some assets to satisfy creditors. For someone with no realistic path to repayment, though, bankruptcy can be the right choice despite its long-term consequences.

Request hardship help from your creditors

If you're facing what you know are temporary financial difficulties, another option you have is to contact your credit card companies directly to ask about hardship programs you may qualify for. Many card issuers will agree to reduce your interest rate, waive fees or accept lower minimum payments for a set period if you ask for it. Some creditors may even offer partial balance forgiveness in extreme circumstances, though this is less common. While this doesn't result in full forgiveness, it can make your payments manageable while you get back on your feet. 

The bottom line

Credit card debt forgiveness isn't automatic, and it's rarely easy. But for borrowers with balances that no longer align with their income or financial reality, there are legitimate ways to reduce what's owed, sometimes dramatically.

The key is matching the strategy to your situation. DIY negotiations may work if you have cash and patience. Settlement programs can help if you need structure and support. Other options, like hardship plans or bankruptcy, may make sense depending on how severe the debt has become.

Before moving forward, though, take time to understand the consequences, especially the impact on your credit and your long-term financial goals. That way, you can ensure that you're making the best decision possible for both your short- and long-term needs.