Some people may be inclined to feel relieved when they hear that their debt will be «charged off». After all, it’s a debt they’ve been having trouble repaying and if it’s «charged off,» at least they don’t have to pay it, right? Actually no–that’s wrong. In fact, one of the worst things that can happen to negatively affect your credit worthiness and credit score is having your debt «charged off.» Although lenders benefit from this event in several ways, as the debtor, this will not do you any good, now or in the future.
