Overview
- New data show U.S. credit card balances around $1.23 trillion with average APRs roughly 22% to 22.83%, making revolving debt especially costly.
- Forgiveness exists as a lump-sum settlement for less than owed, yet lenders treat it as a last resort typically reserved for seriously delinquent accounts.
- Successful forgiveness efforts usually require documented hardship such as job loss, divorce, or medical issues, and the process can stretch up to four years.
- Retirees are advised to cut discretionary expenses, avoid new charges, and lower borrowing costs by negotiating rates, using 0% balance transfers, or consolidating when appropriate.
- Nonprofit debt management plans can reduce required payments and often bring interest down to single digits, while experts caution that card issuers may be slow to reflect any future Fed cuts.