If your credit card debt has increased to the point where there’s no realistic chance of you paying it off in full, or it’ll take you an extremely long time to pay it off, then you may be eligible to have some or all of your debt written off through a debt solution.
Seek advice from a reputable, trusted debt management company to find out if credit card write-off is right for you. Some companies provide free solutions, while others may charge you higher fees for their debt solutions. It’s a good idea to know how much each debt management company charges for their services before you pick one to help you.
What does credit card debt being written off mean?
Having your credit card debt written off means that it no longer exists. Your credit card company, or anyone else, can’t pursue you for the money anymore, and you’ll no longer receive any communications asking you to pay it.
How can credit card debt be written off?
Generally, writing off some or all of your credit card debt is done through a debt solution. There are multiple debt solutions that can allow you to write credit card debt off, including:
Every debt solution is different, and has its own benefits and drawbacks, so be sure to read up on each one thoroughly before you decide which one you’d like to proceed with.
If you’re not sure which debt solution would be best for you, then please call our helpline team on 0800 316 1833 for free, no-obligation advice from one of our friendly debt advisers.
Will my credit file show my credit card debt has been written off?
Writing off your debt through a debt solution means you’ll no longer owe the money, but it will affect your credit score going forward.
A debt solution, whether it be bankruptcy, an IVA or some other form of insolvency, will remain on your credit file for a number of years. For as long as these remain on your credit file your ability to get credit may be affected, so you should consider this before you decide to enter into a debt solution.
This isn’t permanent, however, and there are steps you can take to improve your credit score even whilst the debt solution is still on your credit file.
Can I still be chased for credit card debt after it’s been written off?
If your credit card debt has been written off through a debt solution like an IVA or bankruptcy, then there’s no way you can be chased for it by anyone, including your credit card company, bailiffs or debt collection agencies. With a debt solution the debt will be gone for good, and you’ll no longer be liable for it or expected to pay it.
Sometimes credit card companies will consider debts uncollectable, and will pass the debts over to debt collection agencies or bailiffs if they’re struggling to collect the money themselves.
This does not mean the debt has been written off – instead, it’s simply been sold to a debt collection agency, who will now attempt to recover the money that’s owed for themselves. This usually happens if you haven’t made any payment on the card for an extended period of time.
If you’re worried about credit card debt, you can find out which debt solutions could help you the most by using PlanFinder, our online debt solution tool. You can also find out which of our debt solutions you could be eligible for over the phone by speaking to our friendly helpline team on 0800 316 1833 . Our opening hours are 8am to 8pm, Monday to Friday, and 9am to 3pm on Saturdays.
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FAQs
The simple answer to this question is yes, you can get your credit card debt written off — at least in certain cases. But as you may imagine, there's nothing simple about that process, which often includes negotiations with credit card companies and debt collection agencies.
Does credit card debt ever get written off? ›
If your credit card debt has increased to the point where there's no realistic chance of you paying it off in full, or it'll take you an extremely long time to pay it off, then you may be eligible to have some or all of your debt written off through a debt solution.
Can you get credit card forgiveness? ›
Credit card debt can be overwhelming — but it can also be forgiven in some cases. If you have a significant amount of debt compared to your income, you may qualify for credit card debt forgiveness, so consider reaching out to a debt settlement company for help.
Can you really write off credit card debt? ›
If you fail to make payments on your credit card, the credit card company may declare your debt uncollectable. This process is referred to as a credit card debt "write-off" (also called a credit card "charge-off"). Writing off a debt allows a credit card company to report it as a loss and reduce its tax liability.
Can I ask my credit card company to forgive debt? ›
Credit card companies rarely forgive your entire debt. But you might be able to settle the debt for less and get a portion forgiven. Most credit card companies won't provide forgiveness for all of your credit card debt. But they will occasionally accept a smaller amount to settle the balance due and forgive the rest.
What is the credit card forgiveness program? ›
Credit card debt forgiveness is when some or all of a borrower's credit card debt is considered canceled and is no longer required to be paid. Credit card debt forgiveness is uncommon, but other solutions exist for managing debt. Debt relief and debt consolidation loans are other options to reduce your debts.
How long before credit card debt is uncollectible? ›
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
How to get rid of credit card debt without paying? ›
Bankruptcy is your best option for getting rid of debt without paying.
How to wipe out credit card debt legally? ›
Chapter 7 bankruptcy: This fairly quick legal process can wipe out your unsecured debts through what's called a “discharge.” Chapter 13 bankruptcy: Chapter 13 can also result in a discharge, but typically only after you complete a 3-5 year repayment plan.
What happens when a credit card company writes off your debt? ›
The write-off: The debt settlement company pays the lender the settled amount, clearing the debt. The lender then writes off the balance that wasn't paid for as part of the settlement offer. Keep in mind that the amount of money the lender writes off is considered income for tax purposes.
It will take 41 months to pay off $30,000 with payments of $1,000 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How to pay off $30,000 in credit card debt? ›
5 Debt Payoff Strategies for $30,000 in Credit Card Debt
- Consolidate debt at a lower interest rate.
- Use a 0% APR balance transfer credit card.
- Consider a debt management program.
- Use a debt repayment strategy.
- How to pay off credit card debt fast.
- Tips for preventing future credit card debt.
- FAQ.
Strategies to help pay off credit card debt fast
- Review and revise your budget. ...
- Make more than the minimum payment each month. ...
- Target one debt at a time. ...
- Consolidate credit card debt. ...
- Contact your credit card provider.
FAQs. What percentage will credit card companies settle for? Credit card companies may settle for anywhere from 10% to 50% of the amount owed. It depends on several factors, including the credit card company and how delinquent the balance is.
What is the National debt relief Hardship Program? ›
Founded in 2008, National Debt Relief is a debt settlement company that negotiates the reduction of unsecured debt. If you have over $7,500 in unsecured debt, NDR may be able to cut that amount in half.
Can I negotiate credit card debt after being sued? ›
You can negotiate debt settlement at any stage of the collections process, even after you've been sued by a credit card company.
What happens to unpaid credit card debt after 7 years? ›
After seven years, unpaid credit card debt falls off your credit report. The debt doesn't vanish completely, but it'll no longer impact your credit score. MoneyLion offers a service to help you find personal loan offers based on the info you provide, you can get matched with offers for up to $50,000 from top providers.
What happens after 7 years of not paying debt? ›
The debt will likely fall off of your credit report after seven years. In some states, the statute of limitations could last longer, so make a note of the start date as soon as you can.
Is it true that after 7 years your credit is clear? ›
Highlights: Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
Can a 10 year old debt still be collected? ›
Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
