Consumer confidence dropped this May for the fifth consecutive month, according to a preliminary reading of the University of Michigan's consumer sentiment index released on Friday. Now at 50.8, confidence dipped by 2.7% to bring it to the lowest reading since July 2022. Overall, confidence has declined by 30% in 2025 alone. This comes amid frozen but still elevated interest rates and a cooler inflation rate that, albeit, remains stubbornly above the Federal Reserve's goal, thus partially causing rates to remain where they are.

If you're one of the Americans feeling negatively about the economy and your own financial situation, it's understandable. With the average credit card interest rate just under a record 23%, for example, and the average credit card debt amount around $8,000, you may feel like you have few options right now. 

Fortunately, there are multiple debt relief options available, with credit card debt forgiveness being one of the more attractive solutions. With this particular type of debt relief, borrowers can see their debt load decrease by 30% to 50%, giving them the support they need to improve their financial situation. But if you want to qualify for credit card debt forgiveness, you'll typically need to meet specific criteria. Before applying, consider monitoring select items. Below, we'll detail three you should watch for, specifically.

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What to watch for if you want to qualify for credit card debt forgiveness

Here are three important items to monitor if you're looking to qualify for credit card debt forgiveness:

Your payment schedule

While you shouldn't typically try to avoid paying your credit card debt on time, if you're behind on payments, it often helps you qualify for credit card debt forgiveness. Being delinquent on your existing debt, particularly for an extended period of time, demonstrates to creditors that you're truly struggling to pay – and aren't just looking for a quick fix. 

On the other hand, if you're current with your payments or don't have much of an issue making minimum payments on time each month, you're unlikely to qualify. On-time payments, even over an extended period, show an ability to pay all that's been borrowed, even if that means a longer shelf life for your debt (and additional interest paid in the interim). So, keep an eye on your payment schedule to determine if it's impacting your eligibility in one way or another.

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Your debt load

A few hundred dollars owed to your credit card companies won't be enough to typically qualify you for credit card debt forgiveness. Even a few thousand dollars owed may be insufficient. Typically, debt relief servicers won't offer this solution unless borrowers have a minimum of $5,000 to $10,000 in outstanding debt. 

The higher end of that spectrum that you find yourself on, the more likely you are to receive help. But if your debt load is less than that, the thinking is usually that you can handle it on your own, either independently or with credit counseling, debt management or some other strategic use of a debt relief alternative.

Your documentation

Even if you're substantially behind on payments and have a balance that falls in the generally approved range, you may still not qualify for credit card debt forgiveness. That's because proof of hardship can be required to support your inability to pay. Many credit card companies will want to see that you truly can't pay back what you've borrowed – not that you just prefer not to. 

And a key way to do this is by mandating the surrender of specific documentation. This could mean proof of job loss, medical issues, or more. So, make sure you have this paperwork if requested. That said, the debt load and the delay in payments often take precedence in these circumstances, and proof of hardship verification may not always be required, as it can vary from servicer to servicer.

The bottom line

A combination of delayed credit card debt payments, a debt load of $5,000 or more and proof of financial hardship underpinning your inability to make payments all often form the eligibility criteria for credit card debt forgiveness. Still, some servicers may have more or less extensive criteria, so it's worth watching these three items specifically with the understanding that you may need to do even more to prove yourself as a candidate. Even if you don't qualify, however, with options from debt management programs to balance transfer cards to credit counseling and, in some cases, bankruptcy, there's likely a debt relief service that you can qualify for now that will allow you to begin the delayed work of regaining your financial freedom.