Latest news with #financialrelief

Urgent draft law referred to Lebanese Parliament granting tax relief to war-affected citizens

LBCI

18 hours ago

Business
LBCI

Urgent draft law referred to Lebanese Parliament granting tax relief to war-affected citizens

An urgent draft law has been referred to Parliament aiming to provide tax and fee exemptions for individuals affected by the Israeli war on Lebanon. The proposed legislation includes measures to suspend deadlines related to tax obligations and rights, offering relief to those who sustained damage during the conflict.

Arabian Business

2 days ago

Business
Arabian Business

Debts Settlement Fund

Last February, 13 national banks waived the debts of 3,310 Emirati citizens from loans totalling $98.28 million

How to qualify for personal loan debt forgiveness

CBS News

3 days ago

Business
CBS News

How to qualify for personal loan debt forgiveness

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you want to pursue debt forgiveness for your personal loan debt, it's important to understand how to qualify first. Getty Images Millions of Americans rely on personal loans to get through tough times, whether the money goes to cover medical bills, consolidate credit cards or deal with another type of financial emergency. But when money gets tight, those same loans can become a burden, especially if high interest rates or job loss make it hard to keep up with the payments. In extreme cases, some borrowers may even fall behind or default on what's owed, which can tank credit scores and trigger aggressive collection efforts. It's no surprise, then, that many borrowers who are struggling to keep up with their loan payments start looking for relief, including the possibility of personal loan debt forgiveness. But here's the truth: While there are ways to reduce what you owe, true "forgiveness" isn't as simple or widespread as with student loans or tax debt. Personal loans are unsecured, meaning there's no collateral, which makes lenders less likely to forgive balances outright. That said, there are legitimate programs and strategies that can reduce or eliminate some of your debt under the right circumstances. If you're feeling overwhelmed by your personal loan debt and hoping to find a way out, here's what you should know about qualifying for forgiveness — and what steps to take if you're not eligible. Find out how to get help with your debt problems today. How to qualify for personal loan debt forgiveness If you're buried in personal loan debt and struggling to keep up with payments, debt settlement (which is also referred to as debt forgiveness) might offer a real path forward. It's not exactly forgiveness in the traditional sense — your lender isn't wiping your slate clean for nothing — but it can reduce your total balance, sometimes by a significant amount. In a successful settlement, your lender agrees to accept less than what you owe, usually in exchange for a lump-sum payment. Here's what it takes to qualify: You need to be behind on payments — or close to it. Lenders rarely consider settling a loan that's still in good standing. If you're current or only recently delinquent, they expect you to keep paying in full. Settlement becomes more realistic once your loan is several months past due and the lender starts seeing your debt as a potential loss. That's when they might be more open to cutting a deal to recover something rather than risk getting nothing. Chat with a debt relief expert about your options now. Financial hardship is key. To make your case, you'll need to show that you're genuinely unable to repay the full amount. This might include a job loss, medical emergency, divorce or another serious life disruption. Be prepared to provide documentation, like income statements, medical bills or unemployment records — that demonstrates why your current financial situation makes repayment impossible. You should be ready to make a lump-sum offer. Most lenders prefer settlements that involve a one-time payment. While it doesn't have to be the full amount you owe, you'll typically need to come up with 50% to 70% of the balance to get their attention. If you don't have that kind of cash, some lenders may allow a short-term payment plan, but this usually depends on the age and size of the debt — and their willingness to negotiate. You'll need to be persistent — or get help. Debt settlement negotiations can be drawn-out and stressful. You can try handling it yourself, but some borrowers choose to work with a reputable debt relief company instead, which can result in a better outcome due to the debt relief expert's negotiation experience and relationships with creditors. Just be cautious, as not all companies are legitimate and many charge steep fees. Some companies also have minimum debt requirements as well (a minimum of $7,500 is typical), so make sure you meet those requirements as well if you plan to get professional help. What to do if you don't qualify for personal loan debt forgiveness If you're unable to qualify for personal loan debt forgiveness, here's what else to consider: Look into debt management plans. If you're not eligible for debt forgiveness, a credit counseling agency might be able to help you through a debt management plan. With a debt management plan, the counselor works with your lender to lower your interest rates, reduce or remove fees and consolidate your payments. You still repay the full balance, but often on more manageable terms. Refinance or consolidate your debt. If your credit is still in decent shape, you might qualify for a debt consolidation loan with a lower interest rate to pay off your existing one. This doesn't reduce the amount you owe, but it can make your monthly payments more affordable. Be cautious, though, as refinancing won't help if you can't keep up with payments or if you're already behind. Stay in communication with your lender. Silence can make things worse. If you can't make a full payment, reach out to your lender. Many are willing to work with borrowers who show initiative and good faith — especially if you're proactive about your situation. The bottom line Getting personal loan debt forgiven isn't easy, but it's not impossible, especially if you're dealing with financial hardship and have fallen behind on payments. Debt settlement can offer a way to reduce what you owe, but it requires persistence, documentation and sometimes cash on hand. And if you don't qualify, don't panic. Other solutions like debt management plans or refinancing could help make your debt more manageable, so be sure to explore every option available before your situation gets worse.

CBS News

20-05-2025

Business
CBS News

Does debt forgiveness ruin your credit?

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Debt forgiveness can provide a path to becoming debt-free, but can you pursue it without destroying your credit score? Getty Images/iStockphoto If you're overwhelmed with the amount of debt you've racked up on your credit cards or by taking out personal loans, the idea of settling it for less than you owe might feel like the perfect solution to the issue. And, in many cases, it can be. After all, debt forgiveness promises an expedited path to freedom from crushing balances, and in today's high-rate environment, in which credit card rates are closing in on 22% and personal loan rates are inching toward 13% on average, that type of relief can be hard to find. Today's high-rate environment is hardly the only issue at play right now, though. Americans are also carrying a significant amount of debt overall. The total amount of credit card debt alone is north of $1.18 trillion, and many borrowers are struggling just to make their minimum payments as the interest charges compound. So, debt forgiveness can seem like the only way to stay above water for those who feel like they're sinking due to their growing debt. But like most financial shortcuts, it comes with a few catches. You could owe more on your taxes if your debt is forgiven and your credit score could be impacted during the process, too. Will debt forgiveness ruin your credit, though, or is that damage something you can easily overcome? That's what we'll examine below. Start the process of settling your debt for less today. Does debt forgiveness ruin your credit? In general, yes, debt forgiveness will hurt your credit. Whether or not it ruins it, though, is an answer that's a bit more nuanced. Here's how it works: When you settle a debt, you negotiate with a creditor to pay a lump sum that's less than what you owe. In return, the creditor agrees to forgive the remaining balance. Sounds like a win, right? It can be, but when that debt is reported to the credit bureaus, it's typically marked as "settled" rather than "paid in full," and that can raise red flags for future lenders. Because payment history and account status make up a large portion of your credit score, having a portion of your debt forgiven, thus "settling" your debt, can cause your score to drop significantly. And the more accounts you settle, the more damage you're likely to see. That's not the only issue, either. When you pursue debt forgiveness, you typically stop making payments while negotiating with creditors and saving up for lump-sum settlements. This shows creditors that you're unable to keep up with the payments, but it also adds late payments and possibly charge-offs to your credit report before the forgiveness process is complete. So, the actual hit to your score can start long before the debt is forgiven. That said, this damage isn't permanent. Debt forgiveness stays on your credit report for seven years, but the impact lessens over time, especially if you rebuild your credit with on-time payments, a low credit utilization ratio and responsible financial behavior. And, if you already have late payments reflected on your credit report, the settled debts and further late payments may not have as much of an impact as they otherwise would. Learn more about your debt relief options and chat with a debt expert now. Is debt forgiveness worth the credit damage? Whether debt forgiveness and the credit damage it can cause is worth it depends on your financial situation and your goals. If your credit is already in poor shape due to missed payments, high balances or collections, the damage caused during the process might not feel like a major downgrade. In fact, for people on the verge of bankruptcy, debt forgiveness can be a preferable alternative. It lets you resolve your obligations for less than you owe while avoiding some of the long-term consequences of bankruptcy, like a 10-year hit on your credit report and public court records. Debt forgiveness can also be a smart move if you're trying to avoid wage garnishment, lawsuits or a growing mountain of interest charges. By negotiating a lower payoff, you stop the damage and give yourself a clean slate, especially if you can afford to pay the settled amount in a lump sum and move forward without relying on credit for a while. On the other hand, if you have a decent credit score, a steady income and manageable debt, you might have better options. A debt consolidation loan, for example, can help you roll multiple balances into one fixed payment, often at a lower interest rate. That keeps your accounts in good standing and doesn't tank your credit. Credit counseling agencies can also help you set up a structured debt management plan that avoids the "settled" mark entirely. It all comes down to how much debt you have, how far behind you are and how important your credit score is in the short term. If you're planning to buy a house, refinance or apply for new credit soon, the damage from a settlement could cost you more than the savings. The bottom line Ultimately, debt settlement doesn't ruin your credit forever, but it does put a dent in your financial record that can take time to recover from. But in certain situations, those downsides can be a necessary tradeoff. The key is to weigh the immediate relief against the long-term impact. If you do decide to settle your debts, make sure you understand the process, the tradeoffs and take steps to rebuild your credit as soon as possible.

ASX 200 bolstered on Tuesday following RBA rate cut

News.com.au