Does this sound familiar?
Your client has a credit card, and for whatever reason, they stopped making payments. They get charged with a late fee, plus interest which then pushes their balance over the limit, and they get slapped with yet another charge - an over-limit fee.
Another month passed by, and they are unable to bring the account current, so they’re charged another late fee, another over-limit fee, and more interest.
This continues for months as a horrible snowball effect takes place. Wishful thinking won’t make it go away. Ignoring their bills and accumulating fees only make the problem get bigger and bigger.
Now, after several months of this, the creditor wants their money. They desperately try to reach your client. They call, send letters and relentlessly try to make contact. They know that if they don’t get the account current, the chances of ever recouping their money are slim to none.
After the 90 to 120 day mark, they usually pull a legal maneuver to lessen their losses. This is called a charge-off.
But why do they do this? How does it affect your client’s credit score, and for how long?
And what can you do as a Credit Hero to help your clients who have charge-offs on their report?
In this episode, I’m gonna reveal the secrets you need to know all about charge-offs!
So stick around!
Key Takeaways for This Week:
- Has this ever happened to one of your clients? (0:00)
- Why creditors charge off debt (2:23)
- The devastating effects of charge offs (3:52)
- How to remove charge offs from a credit report (4:37)
- Negotiating with debt collectors (5:19)
- Can settling old accounts actually hurt your credit? (6:14)
Additional Resources:
- Get a free trial to Credit Repair Cloud here:
http://www.creditrepaircloud.com/freetrial
- Sign up for the Credit Hero Challenge here:
https://creditherochallenge.com/live
- Get my free book “The Ultimate Guide To Starting A Credit Repair Business” here:
http://creditrepaircloud.com/freebook
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