Forgiveness may seem improper, but that is actually true. Debt forgiveness does exist and can happen when you’re unlucky financially. Imagine if you are experiencing a huge loss, even threatened to go bankrupt. You have no income, plus the accumulated debt makes you forced to accept credit card debt forgiveness from the credit card company. Well usually, this kind of debt forgiveness has a catch, whether in the short or long term. It is likely to hinder you in future improvements in financial situation. Therefore, you should be well aware of debt forgiveness, so you can plan the next move regarding your debts.
As you know, true forgiveness debts have a variety of forms, ranging from mortgage loans, automotive loans, tax payouts, or even student loans. This time, we will discuss specifically about credit card debt forgiveness. This is important because credit cards are the unsecured type. Therefore, you have no guarantee other than the debt statement.
What is Actually Credit Card Debt Forgiveness?
Credit card debt forgiveness is an option that’s addressed to you when experiencing misfortunate conditions, such as bankruptcy or death accident which will not accept any assets in the form of property or money in a fairly long time. Usually, when you have a bankruptcy or other misfortunate condition, and you report it to your loan or creditor, they will act quickly to take care of all your debts. It starts with secured debt first.
Secured debt such as mortgage or automotive will usually confiscate your property related to the debt. For example, mortgage loan will doing foreclosure while automotive lenders will confiscate your vehicle. After all debts from secured debt have been considered paid off then you should think about unsecured debt like credit card debt.
All your assets are lost carried by secured debt then you really do not have anything else to pay unsecured debt. In addition, they also have no control over your assets. The next thing they do is evaluate your financial situation over the next few months and make sure whether you’re worth the credit card debt forgiveness or not.
If they decide that you will be charged credit card debt forgiveness, then you will be presented with a series of clarification process and statement regarding your financial situation in the coming months. It includes bank statement and any requirements you have to make to pay the loss. It’s common knowledge that the process will last very long and complicated. Your credit card officers will also feel unhelpful in this process. This is what makes credit card debt forgiveness unpleasant.
In addition, other lose that you get from credit card debt forgiveness is a decrease in credit score. If you do not pay credit card debt for three months, it will attack your credit score. Not to mention the series of processes and requirements you have to do will certainly make credit score reputation decreased rapidly. In this phase, you need to think about the right steps to save credit score and get out of the credit card company.