Definition
A program where some or all of your debt is canceled, usually under specific circumstances. It can provide relief if you’re overwhelmed by debt.
What to consider
- Check if you meet the criteria before applying.
- Understand how forgiven debt might impact your taxes.
- Use this as a last resort after exploring other options.
Real world scenarios
- After lengthy negotiations, Laura meets the conditions of a forgiveness program, cutting her total debt nearly in half.
- Niles discovers a nonprofit initiative that forgives part of his medical debt, significantly easing his monthly burden.
- By complying with strict eligibility rules, Manny eventually has a large chunk of his unsecured debt wiped away.
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