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.
Do credit card debt ever get 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: Individual Voluntary Arrangement (IVA) Debt Relief Order (DRO)
Can I ask my credit card company to write off my debt? ›
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. Or the credit card company might write off your debt. But this step doesn't eliminate the debt—it's often sold to a collector.
How do I legally discharge my credit card debt? ›
Outside of bankruptcy or debt settlement, there are really no other ways to completely wipe away credit card debt without paying. Making minimum payments and slowly chipping away at the balance is the norm for most people in debt, and that may be the best option in many situations.
Can you ask for forgiveness on credit card debt? ›
If you find yourself in too much debt to keep up with, you might be able to negotiate with your credit card issuer to settle some of your debt. Debt settlement works by negotiating with an issuer until they agree to let you pay off part of your debt in exchange for forgiving — or settling — the rest of it.
What happens after 7 years of not paying debt? ›
In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.
How long before credit card debt is uncollectible? ›
How can I legally get rid of credit card debt? ›
Consider filing for bankruptcy
Filing for Chapter 7 bankruptcy wipes out unsecured debt such as credit cards, while Chapter 13 bankruptcy lets you restructure debts into a payment plan over three to five years and may be best if you have assets you want to retain.
How to get out of $40,000 in credit card debt? ›
Options For Paying Off Substantial Credit Card Debt. There are a number of strategies to pay off large amounts of credit card debt. They include personal loans, 0% APR balance transfer cards, debt settlement, bankruptcy, credit counseling and debt management plans. You may be able to use more than one of these options.
What percentage will credit card companies settle for? ›
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.
The only way credit card companies are likely to forgive the full amount of your balances is if you file bankruptcy. However, there are other ways to get out of debt in a reasonable amount of time. For example, you may be able to have a portion of your credit card balances forgiven with a debt settlement program.
Is there a way to get rid of credit card debt without paying? ›
In a Chapter 7 bankruptcy, you agree to hand some of your assets (if you have any) over to the court. The court liquidates those assets and uses the money to pay off your creditors. You can walk away from a Chapter 7 filing without paying anything directly to your credit card debts.
Who qualifies for debt forgiveness? ›
If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
Is there a government credit card debt forgiveness program? ›
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
How to pay off debt with no money? ›
How to get out of debt on a low income
- Sign up for a debt relief program.
- Cut expenses to free up extra cash.
- Take advantage of opportunities to earn more money.
- Use financial windfalls to your advantage.
If you're behind on your credit card payments and looking for a solution, you might be considering debt settlement, which promises to help clear your debts. However, debt settlement is risky and should be a last resort for most borrowers.
Does unpaid credit card debt ever go away? ›
Most negative information, including unpaid debts, typically falls off your credit report after 7 years. However, some types of debt, like unpaid tax liens or bankruptcy, can remain on your credit report for up to 10 years.
Can you write off paying credit card debt? ›
Credit card interest is not tax-deductible for personal expenses. The government stopped allowing a tax deduction for credit card interest in the 1980s. Interest on student loans, mortgages, home equity loans, and business expenses are still tax-deductible.
How long before a credit card debt is written off? ›
The time limit is sometimes called the limitation period. For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts.
Can you get credit card debt erased? ›
While it's highly improbable that a credit card issuer would completely erase your debt outside of bankruptcy proceedings, you might have the option to negotiate with your creditors for a partial reduction of your outstanding balance.
