Why should I pay a charged off debt? I understand the confusion. But charged off
debt isn’t forgiven. The company has written it off, and the account
is closed. The company has written it off as a loss.
And they probably sold the debt to a collector, who has the right to pursue you until the
statute of limitations. Unless I go bankrupt. If you’re going bankrupt, you need to include
the discharged debt in the listing. How do I find out whether the debt is charged
off? Who has the right to collect? That information will be on your credit report.
It will show the charge off and the debt collector who got it. Why would I want to pay a charged off debt? It hurts your credit score. You legally owe
it until the statute of limitations end or you’re bankrupt. When is the limit? For most states, seven years. In Rhode Island,
a state debt collectors love, is ten years. Why don’t sharks eat debt collectors? Professional
courtesy. I’ve always heard that joke regarding lawyers. I prefer to quote Shakespeare on that. While a paid charge off and an unpaid one
hurt your credit score just as bad, lenders who see lots of unpaid debt won’t loan money
to you. Except payday lenders. Why don’t you just skip the middleman and
ask the guy who knocks out your knee caps if you don’t pay? At least then you’ll
get in the habit of paying them back. Some lenders may not care about the charge-off
and just charge me a higher interest rate. If your credit report doesn’t matter, what
about karma? You did spend the money. I needed it. The lender is a business, not a charity. What else could happen? A company that limits hiring to responsible
people sees a lot of unpaid debts and decides you can’t work at the cash register, collecting
payments or assembling stuff in a defense contractor’s factory. That’s way more than karma. More like fair.