What is a charge off?

When you become very delinquent on an account the creditor will probably charge it off. This means that they have written the debt off as a loss for tax purposes. This does not mean that they have given up collecting on the debt; the creditor is now likely to either sell the debt or send it to collections. Charge offs are very negative listings, but they can often be settled through debt settlements for much less than you owe. Be very aware of some collection companies, you have rights protecting you from their harassment.

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