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
Typically, a credit card company will write off a debt when it considers it uncollectable. In most cases, this happens after you have not made any payments for at least six months. However, each creditor has a different process for determining whether a debt is uncollectable.
Can you really write-off credit card debt? ›
If you stop paying on your credit card debt and become seriously delinquent, the credit card company will likely write off the debt and consider it uncollectible. At that point, the company takes your debt off its books. However, this write-off offers no benefit to you because a write-off isn't debt forgiveness.
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 ask for forgiveness on credit card debt? ›
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.
Do credit card companies ever forgive debts? ›
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.
How to wipe out credit card debt legally? ›
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 3 to 5 years and may be best if you have assets you want to retain.
How to settle a written off credit card? ›
How To Remove Written Off From CIBIL?
- Step 1: Approach the lender to find out the amount you owe.
- Step 2: Negotiate with the lender on how you will be able to pay back the amount.
- Step 3: Once the loan is settled or cleared, obtain a “No Dues Certificate” or a letter stating the dues have been paid off from the lender.
Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief. In fact, if you receive a solicitation that touts a government program to get you out of debt, you may want to think twice about working with that company.
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.
What is a drop dead letter? ›
Send a 'drop dead' letter
You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.
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.
What percentage will credit card companies settle for? ›
What percentage will credit card companies settle for? Creditors often accept 20% to 100% of the outstanding balance. The actual amount they are willing to settle for depends on individual circ*mstances and negotiation skills.
What is a hardship letter for credit card debt? ›
A hardship letter is a document you send to a creditor explaining why you are unable to make a full monthly payment. Your letter should request a mutually beneficial solution. Creditors might work with you by: Lowering your monthly payment amount.
What happens if I never pay my credit card debt? ›
Your lender will contact you to demand the missing payments are made. Then if you don't make the payments they ask for, the account will default. And if you still don't pay, further action may be taken, such as employing debt collection agents to recover the money you owe them.
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.
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.
Is there really a debt relief program from the government? ›
To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt relief to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt relief to non-Pell ...
What kind of debt can you write off? ›
To be deductible, a debt must be a bona fide loan with an expectation of repayment and may include interest and a promissory note. The debt must be 100% worthless before it can be deducted. Documented efforts to collect the debt must be made, such as letters, invoices, and phone calls.
How much will credit card companies settle debt 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.
