Consolidating debt a
In reality, credit card debt forgiveness is rare and tricky, and can be very costly. Then you have to convince your creditors that you don’t have the means to repay your debt and your situation isn’t likely to change.If you manage to work out a debt settlement agreement, the creditor is all but guaranteed to report your forgiven debt to the IRS. The amount of tax you owe on the forgiven debt depends on your adjusted gross income and your tax rate.If you’re already struggling to make your debt payments or your credit cards are maxed out, you may not qualify for a zero percent credit card balance transfer offer.Bad credit debt consolidation loans are available from some lenders but they are costly.Doing so will help your credit score, because the amount of revolving debt you have is a significant factor in your credit score. Don’t use them while you pay down your debt consolidation loan.
Which strategy will ultimately be the best choice for you depends on your own circumstances, and we can’t tell you what to do.
But the option we want to discuss here is paying off debt.