Donaldson Williams Credit Services
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Credit Card Charge-Off - How Bad Is It?

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So, you’re facing the dreaded “charge-off” that your creditor has been threatening for months – how bad is it really? Well, to be perfectly honest, if your account is already delinquent, and nearly to the point of being charged off, your credit score has already been compromised, therefore, don’t be intimidated by your creditor stating that a charge-off is going to ruin your credit; it’s already taken a “hit.” Rather, take the necessary steps to remedy the situation if at all possible.

 

You see, many people assume that a charge-off is no longer a debt that is owed, and the account balance has been written off by their creditor. Not true. Once an account is charged off it is only “written off” as a bad debt, but the entire balance is still owed; the account is simply reflected differently and is no longer considered to be an account which generates income for the creditor. But make no mistake; you will still owe the entire balance.

 

If you’d like to avoid an account from charging off, contact your creditor to inquire as to what the minimum payment would be to hold the account at its current status. Oftentimes creditors charge a certain percentage of the debt or minimum monthly payment to work with debtors in an effort to avoid a charge-off until the account can be either paid off or settled. Whatever you do, however, please don’t commit to a payment that you simply cannot make. I understand that creditors attempt to coerce debtors into making a payment or post-dating a check, but this will do you absolutely no good if you cannot follow through with your promise.

 

Rather, let the account charge off and contact your creditor at a later date, perhaps when you’re in a stronger position to negotiate a lump-sum settlement through debt settlement.  This will allow you to pay the account in full, with no further balance owed – possibly even through installments. Of course, this can be discussed when you contact your creditor.

 

In summary, charged off accounts aren’t the end of your world; eventually your financial situation can be worked out with your creditors. If you’re facing a charge-off and would like additional information regarding your options, feel free to visit www.DonaldsonWilliams.com . Whatever your current situation may be, there is an end in sight and you will once again be free from debt.

 

If you should have any questions, or need assistance, feel free to contact us. For a free consultation, click here. Remember, Donaldson Williams, Inc. charges absolutely no monthly fee and no set-up costs because we work on a contengency basis, and you don't pay a fee for our services until after a satisfactory settlement has been reached with your creditor(s).

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"I'm not sure how you work your magic, but thank you for everything you have done. I would highly recommend your company."
(C.C. Attorney)

"Marie, we can't thank you enough for everything you have done for us. We had a lot of question throughout this entire process and you have been so patient and understanding. We never felt alone because we always knew we could call or send an email and you would get right back to us. Excellent customer service and an incredible end result. We really do appreciate it!"
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G.B. (Educator)

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M.M. (Regional Manager)

"I appreciate all you have done for us. I would recommend your company in a heart beat to anyone that has been experiencing problems such as our own."
J.M. (Q.I. Supervisor)

“Thanks so much for all you did for us. If we hadn’t found Donaldson Williams we would have surely filed for bankruptcy. You were straightforward from the beginning and we ended up with better results than we thought possible. Every one of our phone calls was returned and your professionalism proved to be unmatched. Again, thanks for saving us over $30,000 and helping us avoid bankruptcy.”

(E.Z. Carpenter)  


“Hi…I just wanted to drop you a line to let you know that we appreciate all you did for us during the worst financial crisis we’ve ever faced. I’m so glad we found you and decided to hire you…your dedication to helping us through a difficult time literally saved us thousands of dollars, as well as allowed us to end our financial problems with dignity and ease.”

(D.D. Communications   Supervisor)

 

“Thank you for your help and your patience. Not only did you save us $27,000, but you were very patient with our questions and worries. You really helped to get us through a very bad financial period. Thanks again!"

(J. G.   Operations  Manager)

 

"Thanks to you I can sleep again and I can answer my phone again. You were so helpful and kind and there aren't enough words to describe my appreciation. The savings I gained through your program was something I wouldn't have thought could be achieved..."

(E. H.   Teacher)

 

"Enclosed is a check for my final account. Thanks for all your help...it's finally over, but I wanted to let you know that we're so happy we chose your company. We started out scared to death, and here we are paying off our last account. You've been great through this whole mess, and we want you to know that we'll gladly recommend you to other people in the same situation."

(D. H.   Administrative Assistant)

 

"Preston and I cannot thank you enough for all your hard work (HFC-especially) in helping us move towards debt freedom. A weight has been lifted and we are finally free. Thanks again."
((P.G. Systems Technician)

"Thank you for being a caring person and having compassion and empathy there are so few left in this crazy world. I know you will have an abundance of blessings in your life. You have helped us more than you'll ever know and I feel like we were sent an angel when we met you. Truly I know it sounds cheesy but it's the honest truth from the bottom of my heart thank you."
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