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.
get credit
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.
get credit
Tags: Bad Debt, Credit Card Payment, Credit Cards
September 1st, 2009 at 3:00 am
get credit
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.
September 3rd, 2009 at 9:09 am
get credit
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.
September 4th, 2009 at 10:05 pm
get credit
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