How quickly do you have to pay after settling a debt?
Once you settle a debt, the clock starts ticking. Here's how much time you could have to pay what's owed.
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August 25, 2026 / 12:53 PM EDT / CBS News
Credit card debt has been a costly problem for borrowers nationwide over the last few years, and in today's economic landscape, the issue is compounding rapidly. Not only have credit card rates hit an average of over 22%, but card balances also climbed by $21 billion during the second quarter of this year, hitting a total of $1.26 trillion. And, with credit card rates sitting as high as they are currently, borrowers who are carrying large balances run the risk of racking up significant interest charges while trying to pay down what they owe.
Luckily, there are also relief options that can help get that debt under control. For example, offering a lower lump-sum settlement on an unaffordable credit card balance can offer a potential way out if you're facing a serious financial hardship, like a job loss. Getting a creditor or debt collector to accept a reduced payoff is only part of what makes a settlement workable, though. You also need to be able to come up with the amount you've agreed to pay, which could mean finding thousands of dollars on a tight budget.
That's why if you're settling your debt, the payment terms deserve just as much attention as the settlement amount. So, before accepting a settlement offer, make sure you understand what payment terms the creditor expects.
Find out if you qualify to settle your high-rate debt for less today .