Can credit card debt be written off? | PayPlan (2024)

If your credit card debt has increased to the point where there’s no realistic chance of you paying it off in full, or it’ll take you an extremely long time to pay it off, then you may be eligible to have some or all of your debt written off through a debt solution.

Seek advice from a reputable, trusted debt management company to find out if credit card write-off is right for you. Some companies provide free solutions, while others may charge you higher fees for their debt solutions. It’s a good idea to know how much each debt management company charges for their services before you pick one to help you.

Generally, writing off some or all of your credit card debt is done through a debt solution. There are multiple debt solutions that can allow you to write credit card debt off, including:

• Individual Voluntary Arrangement (IVA)
• Debt Relief Order (DRO)
• Bankruptcy

Every debt solution is different, and has its own benefits and drawbacks, so be sure to read up on each one thoroughly before you decide which one you’d like to proceed with.

If you’re not sure which debt solution would be best for you, then please call our helpline team on 0800 316 1833 for free, no-obligation advice from one of our friendly debt advisers.

Writing off your debt through a debt solution means you’ll no longer owe the money, but it will affect your credit score going forward.

A debt solution, whether it be bankruptcy, an IVA or some other form of insolvency, will remain on your credit file for a number of years. For as long as these remain on your credit file your ability to get credit may be affected, so you should consider this before you decide to enter into a debt solution.

This isn’t permanent, however, and there are steps you can take to improve your credit score even whilst the debt solution is still on your credit file.

If your credit card debt has been written off through a debt solution like an IVA or bankruptcy, then there’s no way you can be chased for it by anyone, including your credit card company, bailiffs or debt collection agencies. With a debt solution the debt will be gone for good, and you’ll no longer be liable for it or expected to pay it.

Sometimes credit card companies will consider debts uncollectable, and will pass the debts over to debt collection agencies or bailiffs if they’re struggling to collect the money themselves.

This does not mean the debt has been written off – instead, it’s simply been sold to a debt collection agency, who will now attempt to recover the money that’s owed for themselves. This usually happens if you haven’t made any payment on the card for an extended period of time.