What is a bad debt write off for credit cards?
I am 3 months behind a credit card payment and they sent me a letter stating they were going to write it off as a bad debt. What does this mean? Do I have the payment still. I am confused as to what this entails.
Public Comments
- You still owe the debt. Writeoff is an accounting mechanism for the lender as they do not consider the debt collectible. That will be a big negative on your credit history and the debt will likely be sold to a collection agency.
- Your credit will be toast: The interest rate on any other loans will increase You will not get any new credit You will get a 1099 from the bank and will have to pay taxes on the amount written off.
- A Bad Debt is one when the credit card company has decided to mark your debt as noncollectable. This will damage your credibility and stay on your financial report/statements. I would you to take a advice from your lawyer or contact a debt settlement company. I would suggest you to contact http://www.bills.com/debt-consolidation/
