How To Pay Charged-off Accounts

When you ignore several payments, and your account goes unsettled, the creditor might stop you from incurring any extra charges and list the account as a charge-off. However, even if the creditor stops trying to get payments from your account, you can still be responsible for the debt. You can establish whether it is listed correctly on your credit reports, determine the best means to clear the debt,and try to get the charge-off from your reports.

A credit charge-off is an amount that a creditor has given up on collecting after you have missed payments for many months. They can include a mortgage, balances from credit cards, or any other form of debt. The creditor can also decide that the amount is a loss for the business as a last resort.
However, that does not mean that you don’t your loanis cleared. Even after the company reporting the debtas a Charge-off, you still have the responsibility to settlethe bad debt as it can last on your credit reports for even seven years from the initial date that you missed your payment.
Here is how to paya charged-offaccount:

 

There are three methodsof settling a charged-offaccount:

• Through a collectionsAgency: Ifthe lender has handed overthe account to a collection agency,then you will need to settle the debt withthe agency. Before you pay, request the company to offer you proof that they have purchased the account.

• Through the InitialLender: Ifthe lender has not handed overthe account to a collections agencyyou can workwith them to settle theirdebt. After paying, the lender should update the balance as zero and mark the account as Paid Change-Off.

• Settle the Debt: you can decide to negotiate a bargain, and either the collectionsagency or the initial lender accepts to take a lesser amount of money than you had initially agreed. That can impact your credit scores negatively, but the account will not be named as a charge-off.
After you have paid off your debt, ensure that you request for a concluding payment letter. And keep tracking your credit reports – ifthe account doesn’t indicate that you have paid, you will use the letter as proof to dispute any mistakes.