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Pros and Cons of Charge off?

Date: Tue, 02/16/2010 - 11:33

Submitted by sototallybroke
on Tue, 02/16/2010 - 11:33

Posts: 15 Credits: [Donate]

Total Replies: 2


I keep reading posts about people sending in just a smidge of a payment to keep their account from charging off. Can someone explain the whole charge off thing to me? It seems some people will do anything to avoid it and then others say it gets them a lower settlement. I think I am not really understanding the pros and cons of the charge off. Also how to avoid it and what it really means.


charge off is a negative report on your credit report, the creditors will tell you this is the worst thing in the world but it isnt as bad as it they make it out to be. not getting a charge off is better but still it isnt that bad.

the pros and cons of a charge off:

for an example capital one will not settle until the debt actually charges off, so if you want to settle on a capital one it would be wise to allow to charge off and try to settle it with a collection agency that will settle for less that capital one recovery.

another example B of A, you do not want to allow B of A to charge off because right before the debt charges off you will get a one time offer that is pretty wise to take advantage, if you miss this opportunity and the debt charges off you might not ever get this deal again.

one more, 80% of credit cards go up in time up with higher balances, not settling before charge off means you debts will become bigger

fact is every person has a unique portfolio of debt that has a specific game plan in order to get out of it

aka RIOT
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lrhall41

Submitted by on Tue, 02/16/2010 - 11:46

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