GETTING CHARGED OFF
If you miss enough payments, your account will simply be charged off: Closed to future charges at a loss for the issuer. As consumer education specialist Jennifer White at credit agency Experian points out, you’ll still be on the hook for the past-due amount and the balance owed. Even if you pay it, a “paid charge-off” stays on a credit report for seven years. You may also have your charged-off account sold to a collection agency, which you’ll have to deal with to settle your debts.
