For those of you who are dealing with a charge off or potential charge-off situation and are still not sure exactly what this means and what can happen, we will give you a quick overview. Charge-off refers to a debt that the creditor believes it is very unlikely to collect. This happens when a person doesn’t cover their debt in anywhere from 180 days to 6 months. This means that the debt doesn’t necessarily have to be large you just have to have ignored for a certain period of time. This is actually a very common issue even for people who are usually up-to-date with all of their bills. Sometimes you subscribe to things and just forget. After a couple of months, you may be facing charge off.
Accidental Charge Off Debts
In these cases like we said people get into the situation just by a simple mistake of not keeping track of where they sign. If you think that you are being wrongfully charged with something and then charged off we can help you file those complaints. Some people want to save themselves the trouble of paperwork and would rather pay the debt. We strongly recommend that you still fight these off. Even if you pay the debt promptly after you receive notice of it, the charge-off will still remain as a negative stain on your record.
What Happens If I Don’t Pay?
People sometimes think that charged off debts mean that they won’t have to pay them anymore. To be honest we have no clue why this belief has spread. Charge-off debts are sold off to an agency. You may not owe the back directly anymore or the original service provider, but you owe the debt collector agency and you can bet that they will want to get your money. Failure to comply can result in grave consequences! Like losing your home car or business.
7 Years On Your Credit Score
We’ve already said that even if you pay your debt it will remain on your credit score. To be more precise it is set to remain on your credit score for the next 7 years. Effectively hindering your score, but more importantly affecting your future chances of being able to obtain a credit. Charge-offs can be removed from your credit score by coming to an agreement with the original creditor. We have a highly capacitive staff that can help you negotiate a good deal to get this stain of your record.
What Happens If I Can’t Pay?
Obviously a lot of the people that come through our door happen to be in similar circumstances. In this cases like in most others that we cover the best thing that we can advise is that you are proactive regarding your situation. Don’t just let it slip by because before you know it the issue is twice as big than it was when it started! Call or contact us to get one of our experts on your side!