MoneyWatch: Managing Your Money
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February 24, 2026 / 11:21 AM EST
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There’s much to consider before pursuing a credit card debt forgiveness program this March.
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With a new month approaching and a recent report showing credit card balances growing by a startling $44 billion in the final quarter of 2025, millions of borrowers may find themselves contemplating potential debt relief solutions right now. And while there is no shortage of debt relief options to explore, from debt management to credit counseling and debt consolidation loans, perhaps one of the most important is credit card debt forgiveness. Also known as debt settlement, this unique alternative can result in borrowers having 30% to 50% of their existing balance forgiven. Qualifying is also relatively simple, too, as borrowers will need a balance over $7,500, approximately, a demonstrable hardship underlining their inability to pay and a recorded history of being behind on payments.
That said, credit card debt forgiveness isn’t completely risk-free, either, as it has long-term credit score implications and tax ramifications, as the amount forgiven may be considered income. So borrowers will need to approach this debt relief resolution carefully right now. To better decide on the value of pursuing it this March, borrowers should first evaluate the following three items.
Start by checking your credit card debt forgiveness eligibility here.
3 things borrowers should consider before pursuing credit card debt forgiveness this March
Not sure if a credit card debt forgiveness solution makes sense for you heading into March? Here’s what to consider that can better help you determine next steps:
Credit card interest rates remain near record highs
Credit card interest rates may not be quite as high as they were in 2024, but they’re still around 20% right now. That makes them considerably more expensive than what borrowers could secure with personal loans and around three times more expensive than the rate they could now get by borrowing from their home equity.
In other words, if you have any sizable amount of credit card debt currently, a 20% interest rate or higher will make it incredibly difficult to pay it down in any reasonable time frame. And if you’re only making minimum payments, it can take years if not decades to pay off what you owe now, all on the assumption that you don’t add to the balance in the interim. Credit card debt forgiveness, however, while not perfect, can at least reduce what you owe back down to a manageable balance, giving you both breathing room and a fresh way to tackle your debt.
Learn more about your credit card debt forgiveness options now.
Rate cuts will do little to reduce debt issues (if they’re even issued at all)
The chances of a rate cut at the Federal Reserve’s next meeting on March 18? Just 4%, according to the CME Group’s FedWatch tool, as of late February. In other words, rates are poised to stay the same at least for another month. And, even if there is another rate cut issued (the central bank kept them paused in January and didn’t meet in February), it’s likely to be by a minor quarter percentage point margin.
That will have little to no impact on your credit card rate, as the Fed doesn’t drive credit card rates down as significantly as it drives them up. And even if a cut there was reflected identically, a 25 basis point reduction will still leave many borrowers with rates in the 20% range.
Your credit card debt is compounding in the interim
Your credit card debt doesn’t just sit still, with a 20% interest rate tacked on at the end of the billing cycle. Credit card interest charges actually compound on a daily basis, hence the reason why even manageable debt loads quickly become difficult, if not impossible, to contend with without assistance.
Fortunately, credit card debt forgiveness can help here, too, by getting your balance down to a manageable level. That said, it’s also worth considering alternatives like debt management programs or credit counseling, which can help you address the root causes of this issue to better prevent it from recurring in the future.
The bottom line
Credit card debt forgiveness may be the ideal solution to a growing problem. But it shouldn’t be approached carelessly, either. Instead, borrowers should consider the above three items and take a strategic and careful approach. That often starts with speaking with a debt relief company representative who can answer any questions you may have. They can better determine if a forgiveness resolution makes the most sense for your unique circumstances or if you would be better served by pursuing an alternative or even taking a DIY approach. Just don’t sit idle, either. With credit card rates high and the interest compounding daily, an aggressive but informed strategy is often the best one to take now.
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