Charges Offs and How to Remove Them From Your Credit Report

credit tension

What is a Charge Off?

Contrary to what it may initially sound, a charge off is a negative item on your credit report. Although a charge off in your balance sounds like debt or another obligation has been taken off from your account, it isn’t that way. In fact, an according to credifulcharge-off is one of the things that can damage your credit report the most. A charge off is what a creditor calls it when a borrower hasn’t made a payment in a timely manner. This timeframe is usually 6 months for credit card payments and most debt, and 4 months for installment loans.

What Happens When You Have a Charge Off?

Obviously, your creditor has the right to collect what you owe them. When the debt is relatively small – below $2,000 -, they will hire a debt collection agency to do that work. When the amount is higher than the above stated, the creditor can file a lawsuit to recuperate the money.

Why Do Charge Offs Ruin Your Financial Reputation?

A charge off indicates that you don’t pay your debts on time. This will show on your credit report and other financial institutions will be well aware of this fact. If you want to get a credit in the future, a charge off will make it very hard for you to get it. In fact, some may ask you to have it removed to do the loan application process. On top of that, you may have to deal with unfriendly debt collectors which is a nuisance in and of itself.

How To Remove a Charge Off From Your Credit Report?

charge off damage on credit-reportNow that you know how harmful a charge off can be to your financial reputation, it is time to go through the process of removing it. The best way to do so is to talk and negotiate with your original creditor given the fact that he is the only one in charge of reporting the charge off to the credit bureau. The first thing you have to tell the creditor is that you are interested in paying the whole amount owed if they remove the charge off status from your credit report.

By doing this, you will get their attention since this is what they finally want. If you have all the amount of money you owed, you are at a better position to negotiate. However, even if you don’t have all the money, you can also propose payment terms that you can afford to pay. Remember to always speak politely and clearly, and never raise a controversy on the issue as this will hurt your chances of having it removed.

Another way to remove it is to send a pay for delete letter. You can learn how to draft a credit repair letter here. This letter should tell the creditor that you want your charge off remove in exchange of the proper payment. Make sure to give the letter to a person that has a high position in the company. If the creditor doesn’t seem to accept your offer, ask them to at least change your status to “closed” instead of charge off – which will provide you in a better position than the latter.

Money Management Tips

money management tips

Being around 30 years means you are in another phase in life. To be a career person, responsible parent and having the best family would be your next goals; well here are some tips to help you on that;


When you were in your 20s it would have been quite a task to pay all debts because you did not have a secure income now that you are in your 30s; you should focus on paying all the debts. That you had. All loans accumulate interest after a certain time and paying it in time you would just be saving yourself a lot.


Revisiting a budget has never been a bad idea to any one. Now that you are mature you have to prioritize some staff in favor of your budget. You have new responsibilities, children to look after thus clubbing would be an irrelevant way to spend money on compared to cooking for your family or spending time with your family, true isn’t it?


When you were 20 years, having a saving for your emergency was your goal so that you can satisfy your short term desires such as buying the coolest car but as you grow older you realize there is more to that example you realize you have to save for your children’s education, you have to buy a house or even have a little more insurances, right? Hence clearly specifying your savings will help you manage your money to avoid future hiccups.


When you are around 30 years or above, you realize that more people depend on you financially such as your children, right? You also have more assets such as cars house or even businesses to look after. Ensuring everything you love is insured would be the best thing to do just if anything unfortunate happens. You can have health insurances just in case a loved one falls sick , fire insurances if a house or a building is on fire and any other insurance according to your needs to make sure just in case of anything , there is someone who has your back.


Your will get promotions over years and your salary will increase. Save at least 16 % of your salary. This will ensure you have a secure retirement. I am sure you don’t want to get frustrated after you retire so make sure you manage your savings wisely.

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5 Tips on How to Budget Like a Pro

budget like a pro

As an adult, it is important to know how to properly budget, This will help you in accounting for all of your money. There won’t be any questions on where money should go or has gone. Some of the best budgeting tactics aren’t taught in school, but the following five tips will teach you how to budget like a pro.

1. Include Every Last Cent: Creating a budget means you need to include every penny you have come in as well as every penny you have go out Otherwise, you will make it difficult to compare budgets from month to month and visually see progress.

2. Build Your Budget By Importance: Your budget will probably include a lot of different things, but it should go in terms of importance. The first tier should include all of your basic necessities such as rent/mortgage, electricity, gas, running water, and food. Next should come medical and automobile insurance, and gas for your vehicle. Beyond those two tiers will be your luxuries.

3. Decide Which Tracking Method Works Best for You: There are many tracking methods available, but you need to use the one that works best for you There are plenty of apps and websites that can assist with keeping track of your budget, or you can choose to use a spreadsheet on your computer that you create and manage yourself.

4. Consider Using Separate Accounts: It may be difficult for you to account for all of your money when everything goes in and comes out of the same account. If this proves to be true for you, you may want to consider using a different account for each set of needs that need to be paid for in your budget.

5. Know and Control Your Weaknesses: Each of us has something that is a weakness we spend money on It is important we recognize what our weakness is so we can pay close attention to our spending habits surround those weaknesses. This will be vital in sticking to your budget. Budgeting can seem like a daunting task, but it will help you in becoming more financially secure.

You’ll know how much money is coming in and how much is going out. You be able to account for each penny without any confusion. This will be helpful in paying for your everyday needs as well as paying off any debts, saving up for something, etc. Learning how to budget like a pro will simplify your life.