Indulgences
From the Catechism of the Catholic Church, Simplified
Plenary and Partial (1471)
Indulgences are closely linked to the sacrament. An indulgence is the remission of the temporal punishment due to already forgiven sin. This remission comes from the action of the Church, which dispenses from its spiritual treasury. A plenary indulgence removes all temporal punishment due to sin. A partial indulgence removes part of the temporal punishment.
Hell and Purgatory (1472-1473)
Sin has "a double consequence." Grave sin brings "eternal punishment" (depriving the person of heaven). All sins, even venial, must be purified either on earth or in purgatory. These two punishments come not from God's vengeance but from the very nature of sin. A conversion made because of fervent charity can remove all punishment due to sin.
Often, even after eternal punishment is removed by God's forgiveness, a temporal punishment remains. By patient acceptance of trials and by facing death serenely the Christian accepts temporal punishment as a grace. By acts of penance, the person strives to put off the "old man" and put on the "new man" (Eph 4:22-24).
The Church's Treasury (1474-1477)
The Christian is not alone in trying to purify himself. He is one with all other Christians in the single mystical person of Christ.
A perennial link exists between the saints in heaven, the saints in purgatory, and the saints on earth. There is a "wonderful exchange" whereby the holiness of one member profits everyone.
This is called the "Church's treasury", which has infinite value through Christ's merits gained by his redemption.
The treasury also includes the immense and unfathomable merits of the Blessed Virgin Mary and all the good works of those saints who have attained their own salvation and now cooperate in saving their brothers/sisters in Christ (The Doctrine of Indulgences - #5).
Opening the Church Treasury (1478-1479)
By the power of binding and loosing, the Church intervenes for individual Christians and opens her treasury so they can obtain the remission of temporal punishment due for sins. This should spur them to works of devotion.
We can obtain this remission of punishment also for the souls in purgatory.
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