Do I Have to Pay Credit Card Debt from Interest If I Settle My Debt?

The average credit card interest rate in the United States today is extremely high. According to LendingTree, the average APR for all credit cards is 23.79 percent, which represents an increase even from a few months prior. The maximum APR on all new credit card offers is at 27.41 percent as of May 2026, though LendingTree reports that certain cards, such as grocery and dining rewards credit cards, as well as airline and travel rewards credit cards, have an APR well over 28 percent.

Given the very high interest rates at present, many Georgia residents who are struggling with credit card debt and considering debt settlement have a substantial portion of debt due to interest. As we discussed above, interest rates on credit cards are extremely high. As such, paying only the minimum payment each month results in debt accumulating — and often very quickly. While the debt you now owe on your credit card or credit cards includes the interest that has accrued, you can often negotiate a debt settlement agreement for only a portion of that total amount.

How Debt Settlement for Credit Card Debt Works

If you are wondering whether you will have to pay all of the interest accrued on your credit card when you settle your debt, the answer is no. Credit card debt settlement does not involve the debtor paying off the full amount of the debt on their credit card. Instead, the process works like this:

Through their debt settlement lawyer, the debtor negotiates a payoff amount with the creditor. The negotiated payoff amount is for a percentage of the total debt you owe. The negotiated percentage will depend on various factors, including the total amount of debt and the amount that you can offer in an up-front and lump-sum payment. Debt can often be settled for significantly less than what the debtor owes. In exchange for the pump-sum payment up front, the creditor then agrees to forgive the remaining amount of debt. Accordingly, you can get out of debt entirely by paying a portion of what you owe.

The amount you end up paying to settle your credit card debt may include some portion of the interest you owe or it may not. It will depend entirely on the total amount you owe and the negotiated amount for which the creditor agrees to settle your debt. Your lawyer can provide you with more information based on the specifics of your credit card debt.

Contact a Georgia Credit Card and Debt Settlement Attorney Assisting Clients in the Lilburn Area 

Are you currently struggling with a significant amount of debt due to purchases and high interest rates? Depending on your particular financial details, you could end up negotiating a settlement total that does not include any of the interest accrued and may even be less than the total charges you made on the card. To discuss your options for credit card debt settlement, you should get in touch with an experienced Georgia debt settlement lawyer at Konn Law Firm LLC. Contact our firm today to learn more about your debt settlement options and how we can assist you with creditor negotiations.

Source:

lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/