"Never Pay Collections or Charge Offs" is HORRIBLE Advice (2021) | Summary and Q&A

TL;DR

Ignoring charge offs and collections can have disastrous consequences, as debt is still collectible and can result in wage garnishment and bank levies.

Key Insights

• 🥺 Ignoring charge offs can lead to wage garnishment and bank levies.
• 🧑‍💼 Charge offs mean the debt is written off as a loss by the creditor, but it does not absolve the individual of their responsibility to pay.
• 💳 Debt from credit cards and larger collections can still be pursued, including through lawsuits.
• 🈂️ Properly addressing and resolving charged off debt is crucial to avoiding serious consequences.
• 🙈 Bad advice on the internet and YouTube can mislead individuals into ignoring their financial responsibilities.
• 🧑‍💼 Understanding the collection cycle is important to grasp the implications of charge offs.
• 🈂️ Debt buyers often acquire charged off debt and pursue legal actions to collect payment.

Transcript

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Questions & Answers

Q: Is it true that charge offs mean the debt is no longer collectible?

No, charge offs simply mean the creditor writes off the debt as a loss, but it is still legally collectible.

Q: Can debt buyers sue individuals with charged off debt?

Yes, debt buyers often purchase charged off debt and make the business of filing lawsuits and attempting to garnish wages and levy bank accounts.

Q: What are some options for effectively dealing with charged off debt?

Options include debt settlements, bankruptcy, and contesting the debt. Ignoring the debt can lead to disastrous consequences.

Q: Is the advice to ignore collections and charge offs that circulates on the internet accurate?

No, it is not accurate. Debt remains collectible, and individuals should take action to address their debt rather than ignore it.

Summary & Key Takeaways

• There is bad advice circulating on the internet and YouTube suggesting that individuals should never pay charge offs or collections.

• Charge offs occur after 180 days of no payment, and while it means the debt is written off as a loss for the creditor, it does not mean the debt is uncollectible.

• Debt from credit cards and larger collections can still be pursued by debt buyers who file lawsuits, garnish wages, and levy bank accounts.