Types
If one is unable to repay a loan on time, they can apply for debt forgiveness through a program. The eligibility for each option is determined by experts or professionals who investigate each case. Here are the popular types of debts that can be forgiven:

Student loan: The eligibility for forgiveness here depends on factors like the borrower’s income, profession, and total loan amount. The government offers assistance programs to relieve student loans after one has already made a few payments toward the debt.

Credit card debt: Credit card companies are now open to negotiating or forgiving debts. However, once the repayment amount is cleared or reduced, one will be restricted from using their credit card or getting a new one.

Mortgage: Similar to student loans, the federal government provides a wide range of options for mortgage relief. Alternatively, one can opt for Home Affordable Modification Program, where they can reduce monthly payments if eligible for the relief. However, mortgage forgiveness is usually a lender’s call.

Benefits
The tools offered by the government and private organizations are an effective way to repay debts while relieving the burden of interest and penalties for failure to make timely payments. Here are some of the benefits of applying for debt forgiveness:

Helps avoid bankruptcy: Opting for a debt forgiveness program will help one avoid or overcome the need to declare bankruptcy. Declaring bankruptcy can negatively affect the credit score and the ability to borrow in the future.

Relieves debt burden: Though the eligibility for debt forgiveness application can vary depending on the program and lender, most relief programs aim to reduce the debt burden so that one can repay the remaining loan amount as soon as possible. If the monthly payment amount is reduced by the lender, the borrower can consistently make payments and avoid entirely defaulting on the loan.

Tips for applying
Here are some key tips for successfully applying for debt forgiveness:

• One should determine the total amount they can pay in the future before filling out the debt forgiveness application form. 
• One should have key information on hand, like account number, current balance, and payment history.
• One should check the eligibility beforehand as debt relief programs come with strict criteria, such as minimum income or consistent payment history.
• If eligible, one can start by filling out the required paperwork or speaking with the creditor directly and negotiating the loan amount.

Factors determining eligibility
Each debt forgiveness program comes with eligibility criteria. The following factors will be considered before one can apply for debt forgiveness programs:

Income: Some programs consider the income amount to fix a percentage of repayment. Here, upon consistent repayment based on income, one can become eligible for debt forgiveness.

Credit score: To open a new consolidation loan or credit card account, credit reports and scores will be reviewed. 

Loan amount: Borrowers may be considered ineligible for debt relief when their loan amount is lower than the qualifying limit. For instance, the National Debt Relief only accepts those who owe at least $7,500.

Debt forgiveness companies
These companies assist borrowers in negotiating the loan amount that should be forgiven. The best debt forgiveness companies have enough experience to negotiate with lenders and counsel clients regarding debt management and bankruptcy. Some of the best debt settlement companies are:

National Debt relief
Accredited Debt Relief
New Era Debt Solutions
CuraDebt
Freedom Debt Relief
DMB Financial

One can also consult organizations like the National Foundation for Credit Counseling or the Financial Counseling Association of America for support. 

While debt can be crucial for leading the life one wants, it can also be a burden. Seeking programs that can reduce the burden is the best solution here. While it can affect the credit score, debt forgiveness programs can be a huge relief for those in need. To choose the right debt forgiveness program, one should do their research and explore all the available options as soon as possible.