Debt Forgiveness Programs

By John Alexander - Aug 13, 2009

Debt forgiveness programs, also known as debt relief and related to debt settlement, allow you to settle your debt without having to pay back the full amount owed. You may be wondering why credit card companies would accept only partial repayment or forgive a portion of your debt. The truth of the matter is that credit card companies already know that a percentage of borrowers will either default on their cards or struggle to pay back the debt; therefore, they include the charges in the interest and fees.

How do debt forgiveness programs work?

Debt settlement is probably the most common debt forgiveness program available to consumers. When you join a debt settlement program, you stop making payments on your credit cards and pay the debt settlement firm. They save the money for you and use it to negotiate on your behalf a settlement amount with your credit card companies. Typically, a debt settlement program is most useful if you’re already behind on payments. It is a better alternative to bankruptcy because you’re able to settle your debt and start building your credit back faster.

Debt Consolidation Union offers debt settlement programs that help you get out of debt in 1 to 3 years. To find out more about how we can help you get out of debt call us toll free at 1-800-957-8310 or fill out the free debt consultation form.