"Charged Off" Means "Deadbeat"

Sheila wants to know what "charged off as bad debt" means. Dave tells Sheila it means she didn't pay them, and they wrote her off as a deadbeat.

QUESTION: Sheila on Twitter wants to know what "charged off as bad debt" on a credit report means. Dave tells Sheila it means she didn't pay them, and they wrote her off as a deadbeat, but she still owes the debt.

ANSWER: It means you didn't pay them, and they wrote you off as a deadbeat. They never got paid. You have a debt that you never paid. You still owe it. You're a deadbeat. That's what that means in credit terms. I'm being facetious, but in credit terms, that's the deal. If you want that cleaned up, you've got to go to Chase and settle that debt with them, and then it will say, "A bad that is settled," which is much better than a “charged off bad debt.”

The way you settle a debt is in writing, and never giving the collections company electronic access to your checking account, because they will steal from you. It's legalized theft, but they're thieves. You can tell a credit card collector is lying if their mouth is moving. They're scum. That's what I'm saying. I hope I wasn't unclear.