Credit card debt relief August: 3 moves CBS News says to make now
CBS News says borrowers should review relief options, collect documents and vet companies as card debt keeps pressure on households.
By Georgia Hale · Staff Writer
3 min read
Credit card debt relief August planning starts with a blunt reality check: CBS News reports that household debt reached a record high last year, inflation remains stubborn and interest rates, after cuts in 2024 and 2025, could rise again as soon as this fall.
For borrowers carrying expensive credit card balances, CBS News says there are still several paths to consider. The catch is timing. Some forms of help, especially credit card debt forgiveness, can take years, so waiting for balances to cool off on their own may only make the bill harder to tame.
CBS News outlined three steps for cardholders to prepare for in August: check which relief options they may qualify for, gather the paperwork those options require and carefully research companies that offer debt help.
What credit card debt relief options are available?
CBS News points borrowers first toward a broad review of options, including debt management, credit counseling, credit card debt forgiveness, debt consolidation loans and bankruptcy. Credit card debt forgiveness can involve having part of a balance forgiven, while consolidation loans may be an option for borrowers whose credit is still in good shape, according to CBS News.
Bankruptcy can help in some cases, CBS News reports, but it may not be the best first move for every borrower. The recommended starting point is to compare what is actually available based on a borrower’s own finances rather than jumping straight to the most severe remedy.
That means checking eligibility before committing. A borrower who qualifies for credit counseling may have a different path from someone seeking forgiveness after a hardship, while someone with stronger credit may still be able to look at consolidation.
Get the paperwork ready before applying
Once borrowers know which route fits, CBS News says the next job is building the file. For a credit card debt forgiveness program, that may include proof of hardship tied to a medical problem, job loss or divorce.
Other options may demand more paperwork. Bankruptcy, CBS News notes, can require broader documentation that may not be easy to pull together quickly.
The timing matters because unpaid card balances can keep growing. CBS News warns that delays may allow interest charges to compound while a borrower’s credit score falls further.
How should borrowers pick a debt relief company?
CBS News says borrowers can compare multiple debt relief companies through online marketplaces, but the shopping process should be careful. One warning sign highlighted by CBS News is any company that guarantees a result.
Borrowers should read online reviews, check with the Better Business Bureau and contact company representatives directly, according to CBS News. Those conversations can help determine whether a company fits the borrower’s needs or whether another route may be better.
The broader message is practical rather than flashy: August can be used to get organized. A borrower who checks eligibility, gathers documents and vets help carefully may be in a stronger position to address credit card debt before rates, fees and interest make the problem worse.
This story draws on original reporting from CBS News.