How debt forgiveness could cut a $20,000 credit‑card balance
CBS News explains how credit‑card debt settlement (negotiating to pay less than the full balance) could materially reduce a $20,000 balance this October, given elevated U.S. credit‑card interest rates and rising outstanding balances. The piece quantifies typical settlement ranges (30%–50% reductions), compares settlement totals with a conventional repayment scenario at ~22% interest, and outlines timelines and potential interest savings for U.S. consumers.
Economy
Personal Finance
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Here's how much debt forgiveness could lower a $20,000 credit card debt this October
New information:
- U.S. outstanding credit‑card balances cited at $1.21 trillion; average cardholder balance about $6,500.
- Typical successful credit‑card settlements generally reduce the original debt by roughly 30%–50%; on $20,000 that implies paying $14,000, $12,000 or $10,000 respectively.
- Comparative example: repaying $20,000 at ~22% with $450 monthly payments could take about eight years and result in roughly $42,000 total paid (principal plus ~ $22,000 in interest), whereas a 50% settlement could cut total paid to $10,000 and shorten resolution to 3–5 years.