Have you ever done a charge off? A charge off is the step right below a bankruptcy. About 13 years ago I had debt of about $10,000 and the "hottest" thing going was to go through this debt settlement attorney (who has since been convicted of embellezing customers monies) who will work to get your payment reduced to a more manageable amount. They set you up with a payment amount for each month and they take over contacting your creditors and negotiating a final balance to pay off your account. What they failed to tell me was that it would be listed as a charge off on my credit report. And it stays on your credit report for 7 years! Luckily all of mine are off my report but I was so shocked to find out what their practice was. Here is an interesting article on charge offs.

Managing Debt

I know we are all facing tough times now with the economy so make sure you do all your research before having to make a decision.

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To me a charge off was when someone disputed a charge on their credit card. I worked in a charge off department for 6 months. Not a fun job!

Thanks for sharing, you may save someone else from learning the hard way.

If the amount you owe is getting reduced, that is the only way to do it. It should affect your credit rating.

Very Informative Article Mamaof3kiddies

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My choices yesterday create my today. My choices today create my tomorrow.

You are welcome! Great blog with great goals established!!!

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