How to prepare for credit card debt forgiveness this April

Heading into April 2025, credit card debt continues to saddle finances in households across the country. Consumers ended 2024 carrying unprecedented levels of credit card debt — $1.21 trillion in the fourth quarter of 2024, up $45 billion over the previous quarter. But it's not just that consumers are carrying more credit card debt than ever. The percentage of people who were at least 90 days late on a credit card payment went up in the last quarter of 2024, a sign that it's becoming harder for the average household to keep up with its credit card debt. 

The financial burden credit card debt puts on the average consumer can feel like too much to bear, at times. That burden will only get heavier in April as compounding interest continues to push credit card balances higher.

Fortunately, credit card debt forgiveness can provide relief to those facing mounting credit card balances this April, but entering a debt forgiveness program requires planning. Below, we provide the steps you need to take to prepare yourself. 

Get the help you need for your credit card debt here.

How to prepare for credit card debt forgiveness this April

Here are the steps you need to take to get yourself ready for a debt forgiveness program: 

Determine eligibility

The first step to getting credit card debt forgiveness is confirming you qualify. Generally speaking, the debt relief companies that offer credit card debt forgiveness have three main criteria for eligibility: 

• You have at least $5,000 to $10,000 in credit card debt. 
• You can prove you have a financial hardship that makes you unable to pay off your balances.
• You're behind on payments. 

If you know you don't meet the above requirements, you have alternatives to debt forgiveness this April. 

One option is a credit card debt consolidation loan — you take out a loan at a lower interest rate than your credit cards, then use the loan to pay off your balances. As a result, you typically save money on interest and make repayments easier since you have one to make each month instead of multiple. 

Another option is a credit card debt management program. Whereas a debt forgiveness program reduces what you owe, a debt management program can potentially help lower your interest rates but doesn't typically reduce what you owe. 

See which debt forgiveness programs you qualify for here.

Gather paperwork

If you qualify for a credit card debt forgiveness program, the firm you work with will likely ask you to provide credit card statements, a state-issued ID and your bank account information. Additionally, most credit card debt forgiveness companies won't simply take your word that you're dealing with a financial hardship. They'll want proof of the issue. That generally means documentation of a medical illness, job loss or other issue that's preventing you from making your monthly credit card payments as agreed upon. Considering that this documentation may take time to secure, it behooves credit card users to start the process soon. Round up this paperwork before April to make sure you have everything you need to start your debt forgiveness program. 

Be realistic about the timeframe 

If you start your credit card debt forgiveness program this April, you can expect it to take two to four years, approximately. Delays in approval, documentation gathering and answering requests for documentation follow-ups, however, can skew that timeframe. So it's important to not approach credit card debt forgiveness this April as a quick fix that will make your credit card debt vanish by May 1. Most credit card debt forgiveness programs function as part of a process, as the company will negotiate your balances with your credit card issuers, often reducing what you owe by 30% to 50%. But your debt won't be completely eliminated and it won't happen in a few weeks (or even a few months).

The bottom line

Credit card debt forgiveness can be a financial lifeline if you're struggling with credit card debt. However, it's a process that can take up to four years and, during that time, you'll stop making payments to your credit card issuers and instead make payments to your debt forgiveness company. The company will then use those payments to pay off the balances it negotiated with your creditors. Because of this, it's common for your credit score to drop. That being said, you can repair your credit score after your debt forgiveness program is over using several methods, including making on-time payments and keeping your total credit card balances below 30% of your total credit.