What happens if you’re sued while enrolled in a debt forgiveness program?

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September 4, 2026 / 10:04 AM EDT / CBS News

If you've ever faced a substantial amount of credit card debt, you know how difficult it can be to get ahead of it, even in a debt-friendly economy. But today's economic landscape is hardly friendly to those with high-rate debt. After all, the average credit card interest rate is now sitting above 22%, and credit card balances are also rising rapidly as more borrowers find themselves struggling to cover the rising costs of groceries, gas and housing. In turn, carrying credit card debt from month to month is a particularly expensive proposition right now — especially if you're facing an unexpected financial hardship.

If you're struggling with credit card debt in this landscape, the idea of enrolling in a debt forgiveness program can seem like an appealing option. After all, these programs, also known as debt settlement programs, can help you resolve your high-rate balances for a smaller amount. Borrowers who enroll in these programs typically settle their balances for 30% and 50% less than they owe on average, making…

Original source: https://www.cbsnews.com/moneywatch/