Is there any way to avoid charge offs? Here was a trick that we used to tell our customers when I worked at a bank. We knew that with late fees, over the limit fees, interest, quarterly or yearly processing fees, it was more beneficial for us to keep them paying fees instead of their accounts charging off.

When customers got around 60-90 days delinquent and were concerned about being charged off (we charged off delinquent accounts that were 150 to 180 days delinquent) we told them all they had to do was to continue to make a minimum payment that would keep them 30 to 60 days delinquent. By doing that, they could avoid a charge off. Many of them thanked up when they got a bonus or income tax refund and got their accounts up to date. It helped us because we were able to collect a lot more money in fees.

Most people in this situation will simply through up both their hands in discuss. They don’t calm themselves and think this process out. Once the charge offs show up on their credit reports, they think their credit is shot forever. There are many creditors that will still do the following things for you.  If the balance owed is around two hundred dollars, many creditors will do the following two things.

If the balance is paid in full or settled for 50 to 75% they will delete the account from your credit reports. If you owe over $200 and pay off the balance, many creditors will delete an account from your credit files. If you have charge –offs and want to discuss the best way to handle them I can be reached at 313-744-5977 or by e-mail at gethelpnow@tiredofbillcollectors.com.