Written By Melissa Cook
Mar 14, 2023
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A Charge-Off is a financial term used to describe a situation where a creditor writes off an outstanding debt as uncollectible. 

In simpler terms, it means that the creditor has given up on trying to collect the debt and has decided to close the account.

When a borrower fails to make payments on a debt for an extended period, the creditor may choose to declare the debt as delinquent. After a certain amount of time, the creditor may decide to charge off the debt, which means that the debt is considered to be a loss for the creditor.

When a debt is charged off, it does not mean that the borrower is no longer responsible for the debt. The borrower is still obligated to pay the debt, and it will remain on their credit report as a negative mark. In fact, a charge-off can severely damage a borrower’s credit score and make it difficult to obtain credit in the future.

After a charge-off occurs, the creditor may sell the debt to a collection agency, which will attempt to collect the debt on behalf of the creditor. The collection agency may use various tactics to try to collect the debt, including phone calls, letters, and even legal action.

If a borrower is unable to pay the debt, they may choose to negotiate a settlement with the collection agency. This means that the borrower agrees to pay a portion of the debt in exchange for the creditor forgiving the remaining balance. While a settlement may help to resolve the debt, it will still have a negative impact on the borrower’s credit score.


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Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

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