It’s not often we hear positive stories about credit card debt, but for the first time ever many of us will be wishing we had racked up credit card debt. 😉
I always say that you should only use credit cards if you’re in a situation where you can pay your balance in full every month. With few exceptions (like if you’re in an absolute bind, or if there’s a good 0% introductory interest rate), it’s not worth financing charges on credit cards. The interest you’ll pay will negate any rewards earned.
So that brings us to what seems like a totally unbelievable story. Chase is forgiving all credit card debt in Canada. You read that right.
What happened? Chase issued credit cards in Canada for 13 years, including both Amazon and Marriott co-branded cards. However, in March 2018 they decided to exit the Canadian credit card market, because I guess it got to the point where it just wasn’t worthwhile to them anymore.
Why would they stop seeking payment of debt, though? While they haven’t said officially, presumably it’s for similar reasons that they left the market to begin with — it just wasn’t worth collecting anymore. I assume there were significant costs associated with collecting the debt in a country in which they don’t otherwise operate.
We don’t know just how much debt they’re forgiving — are we talking millions, tens of millions, hundreds of millions, or what?
CBC has interviews with all kinds of people who were understandably in absolute shock when they got this message.
A 55 year old with $6,157 in debt said:
“I was sort of over the moon all last night, with a smile on my face. I couldn’t believe it. It’s crazy. This stuff doesn’t happen with credit cards. Credit cards are horror stories.”
Meanwhile a 24 year old who hadn’t made a payment towards her debt in five years said the following:
“It’s kind of like I’m being rewarded for my irresponsibility.”
I’m not sure there’s actually a moral to the story here. It’s certainly not to rack up credit card debt in hopes of it being forgiven. 😉 But it is the first feel-good story I’ve ever read about credit card debt, so there is that…