Millions of Americans are grappling with high credit card debt as interest rates soar above 23%. This situation is particularly daunting for those with low credit scores, which limit borrowing options and make traditional debt relief strategies, like balance transfer cards, less accessible. While debt consolidation and debt forgiveness are two common approaches to tackle credit card debt, they serve different purposes and come with their own sets of challenges. Debt consolidation involves combining multiple debts into one loan with a lower interest rate, but often requires a decent credit score, which many individuals lack. Conversely, debt forgiveness programs are more accessible and focus on negotiating a lower settlement amount with creditors, although they can further impact credit scores negatively. Ultimately, the decision between these two options should be based on individual financial stability, goals, and the ability to manage repayments, with each path offering unique advantages and drawbacks.
Read the full article here.