The importance of removing charge offs cannot be overemphasized. Not with the damage that this can do to your credit report. In a nutshell, charge offs refer to the point that credit card companies get to and decide that they will not be able to retrieve debt from some of their customers. And so decide to write same off. This often will happen after such customers have missed and/or have made late payments on their credit cards. The credit card firm after this will also try to reach these customers via numerous letters as well as phone calls to make payment, which will be to no avail.
After about 6 months of this kind of behavior, the credit card firm will come to a decision on such defaulting customers charging off these debts. If you fall under this category, you certainly are not the only one as a report in recent times has shown. In fact, more and more people are finding it difficult to make their credit payments as at when due in this difficult economic climate.
Once charge off has been effected, you will not be able to make additional purchases with this your card. It is even possible that such step might have been affected many weeks before this point; this will depend on the seriousness of the debt. Charge offs contrary to what some might believe do not just disappear, but have been taken over by a debt recovery or debt collections firm.
Now charge offs are not good for credit reports, and will seriously destroy the hopes of anyone getting approval for any of the many credit products available out there any time soon. Consequently, having this at the back of your mind should encourage you in working towards removing charge offs.
To start this process, you should access your credit report by getting a copy of it. It is possible to get this done without making any payment. Then, next verify the accuracy of this charge off. Note that it is possible to dispute and remove charge offs that are not ascertained by writing a letter of dispute to the concerned credit bureau agency.
The next step to take if this does not work, is to get in touch with the collections firm. This company will be the one that has bought over your debt from the credit card firm at a discounted rate. They might be comfortable with a part settlement of your debt if you decide to make lump payment, or arrange for a payment plan that is monthly.
The important thing here in removing charge offs is to bargain as well as remain firm; they might threaten to sue you to court, asking that you make full payment of debt otherwise, but if this is not possible based on your financial capability, then don’t fall for it as this might land you into greater financial woes.
About the Author (Author Profile)
There are no comments yet. Why not be the first to speak your mind.