The 3 Debt Forgiveness Methods & How To Use Them

September 23, 2011

Debt Forgiveness

There are three methods that you can take advantage of when it comes to debt forgiveness, which if you are unfamiliar with the term, it is when you get a portion of the entire debt wiped away, and never have to pay it. The three different categories of debt forgiveness are; student loans, credit cards as well as mortgages, which we will go into great detail about how debt forgiveness applies to these categories so that you can learn how to get your debt forgiven.

debt forgiveness

Student Debt Forgiveness

Public Service РStudent debt forgiveness  also known as student loan forgiveness is available in two main forms, and those are public service jobs as well as community service work

  • Public service jobs which are essentially jobs in areas of low income, are available in many different profession some including but are not limited to; nursing, lawyers, doctors, teachers, military and many more. Debt forgiveness through public service jobs are usually offered in the form of you paying 10 years of on time payments, usually being fairly low because qualifying jobs come with lower payments, which after the 120 payments the rest of your debt will be wiped away.
  • Community Service – Community service student debt forgiveness is offered through many different national organizations like Peace Corps, Ameri Corps and VISTA. Debt forgiveness through this method either comes in the form of the organization paying a percentage of your loan off each year of service, like 15 to 30 percent or providing you a lump payment each year which you can use on your loans, usually being around 5000 or more.

Credit Card Debt Forgiveness

When it comes to credit card debt forgiveness there is one great way that you can utilize to get a lot of your debt pretty much wiped away, that is credit card settlement.

  • Credit card settlement is great for people who are way behind in payments or have stopped paying in general. Debt forgiveness through credit card settlement is done by a credit card settlement company negotiating a lower debt total with your creditors. The act of credit card settlement can result in a total debt reduction of 40 to 70 percent which equates to getting out of debt faster because you now have less debt you have to pay off.

Mortgage Debt Forgiveness

Mortage debt forgiveness which is when a lender takes a lesser payment than what the total amount due was as the final payment. The following information describes the method you can use for mortgage debt forgiveness.

  • The Mortgage Forgiveness Debt Relief Act of 2007 has opened up great opportunity for mortage debt forgiveness. This plan is for people whom because of forclosure have lost their home, or for those who have had their mortgage loans restructured, and can get up to 2 million dollars in debt forgiveness for couples, and one 1 million for for those who are filing seperately. If you are interested in learning more about this debt forgiveness method for mortgages, you can visit this site: http://www.irs.gov/individuals/article/0,,id=179414,00.html¬† for more information.
Category: Debt Forgiveness

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