What is a bad debt write off for credit cards?
aidan_adore asked:
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.
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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.
September 29th, 2009 at 7:20 am
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. jlf
September 30th, 2009 at 10:28 am
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. MadMan
October 1st, 2009 at 5:03 am
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 Freedom Debt Relief