A charge-off is a debt that is deemed uncollectible by the original creditor and is subsequently written off. Charge-offs are classified as bad debts on the creditor’s income statement and are removed from the balance sheet. When a creditor charges-off your account, it’s declaring your debt as a loss for the company. The creditor then usually sells or assigns the bad debt to a collection agency.
Dealing with debt collectors is an art – just as is the way that they attempt to deal with you. Your credit rating is important, and they know that. Professional debt collectors spend every day using techniques that are proven to get results for them. They will hone in on your weaknesses if you show any. It is your credit rating at stake any time that you are dealing with a debt collector. So, let’s learn how to handle these aggressive money mongers:
The first issue at hand is for you to understand your rights.
It’s not easy and it’s not quick, but at least we have tips you need to fix your credit report. Is your credit report telling lies about you? Credit report errors happen all the time, especially if you have a common name. Dispute them pronto, so you don’t end up paying more than you should for your mortgage and home owners insurance, or have trouble getting credit.
Just remember: Removing errors is a DIY project. So don’t get baited by credit repair servicers (“Pay us before we do any work on your behalf;” “Don’t contact the credit reporting companies directly” ) — these pitches are usually scams. Instead, try these seven tips for fixing credit report mistakes.
Like child-rearing and curing ailments, credit building is chock-full of old wives’ tales that don’t pan out. Smart financial moves such as closing accounts or paying off loans early may not be the credit boosters you think they are.
Sadly, there are no real quick fixes despite what some commercials or online credit repair ads might proclaim….