Various individuals who have different forms of debt often seek ways to either affordably repay what they owe or find debt forgiveness options on unsecured debts which may be causing problems in their financial life. While it depends on the type of debt as to whether forgiveness options are available, there are instances where lower payments may be acquired or debt may be forgiven entirely if an individual meets certain requirements.
As an example, Federal student loan debt may be forgiven through programs tailored to assist individuals who have entered into a public service career. In some cases, graduates who have federal student loans may be able to make payments on their debt for 10 years and then have the remaining balance of their student loan debt forgiven.
While this is a specific case, there are numerous individuals who are seeking credit card debt forgiveness or other forms of assistance on unsecured debts. However, most creditors are unwilling to simply drop a balance that may be owed unless there is a specific situation which has arisen.
There are credit counseling agencies or nonprofit organizations which can assist consumers in dealing with their debt, but typically some form of repayment will be required before a forgiveness opportunity is made available. There have been cases where, for instance, an individual with credit card debt contacted their lender, explained their situation, and fear may eventually miss payments or default on debt.
There are some credit card companies and creditors who can work with individuals to find affordable repayment solutions or, in rare cases, offer the forgiveness of debt if a set amount is paid. Usually, these types of opportunities have only been made available to consumers who have had an excellent payment history and a good credit score, as these individuals may be seen as more likely to have paid their debt had financial problems not come about.
In most cases, the majority of individuals who have attempted to gain forgiveness on various debts have not met with success, as most lenders wish to recoup their money at all costs. However, in cases like federal student loans or where a good customer has simply hit a difficult financial time, speaking with a lender is the first step in the possible forgiveness of certain debts or at least formulating a plan which can make eracing debt easier over time.