As a result, a charge-off will appear on your credit report indicating that you did not pay the outstanding balance and negatively impact your credit score. Once your creditor determines you are unlikely to repay the amount owed, your creditor can charge-off your debt. Who Your Debt if Owned ByIf your account designation on your credit reports is “charge-off” the original creditor still owns your debt. If you are negotiating a payment schedule to avoid a charge-off, ensure your agreement is in writing and request that it includes that if you abide by the payment schedule the credit card company will consider the debt satisfied and not initiate a charge-off. A charge-off is considered a serious negative event on your credit report and indicates that you defaulted on your commitment to pay a debt.

Source: Forbes December 30, 2020 13:52 UTC