Everett Collection / Rex USA 1 / 9
Everett Collection / Rex USA 1 / 9

Mary J. Blige has moved a step forward in her bid to clear her debts after bank bosses agreed to reduce the sum owed by her charity.

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The singer, who has been hit with two large tax bills this year, allegedly defaulted on a loan given to her charity, the Foundation for the Advancement of Women Now.

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Executives at TD Bank sued over the loan, claiming the total owed came to around $322,000, but TMZ.com now reports a settlement has been agreed and the debt has been slashed to $125,000.

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Blige was hit with a $3.4 million tax bill from the Internal Revenue Service back in May, while she was previously sued by another bank for allegedly defaulting on a $500,000 loan.