Credit Card Debt Forgiveness

A very controversial subject among readers is whether or not credit card debt forgiveness should be a possibility for those who are not willing or able to pay off their debt. Forgiving a debt involves writing part of the balance off or forgiving some or all of the debt.

Credit cards can be very dangerous if a person uses them without a budget or plan for paying off the debt. Each month that the balance is not paid, interest charges accrue and the balance goes up. visitors and fellow savers are used to higher rates being a goop thing.  The opposite is true for debtors.  Sometimes people who are very deep in debt use credit cards for their living expenses, charging everything including food, clothing, and rent or mortgage payments. They use their income from their jobs to pay off credit card balances, and with very little money left over, they turn to credit cards for their living expenses. Although this is a very sad situation, the debtors would not be on this financial merry-go-round if they had not bought things that they could not afford in the first place.

This is where the controversy enters. A responsible small business or person that is limit spending, do without luxuries unless they can afford them, and pay their credit card bills on time have little empathy for people who have gotten into deep credit card debt. They do not want to be penalized by being charged higher interest rates on their accounts because banks and lenders want to make a certain percentage of profit. Many believe that these people should file bankruptcy and let the courts determine if their debt should be written off or if they should pay it. This would certainly keep anyone who could afford to pay, but simply wanted to avoid paying, from being granted forgiveness on their debt. This group also has little sympathy for lenders who may lose money if they need to completely write off a debt.

Each side of the credit card forgiveness issue has some valid points, and each case needs to be handled individually because of its unique circumstances. The best way of all to avoid credit card forgiveness is to be very careful and give each purchase some special thought before handing the clerk your credit card.