Ask the Dolans: How does a debt charge-off impact my credit score?

Before you go, we thought you'd like these...
Before you go close icon
Ken and Daria Dolan, America's first family of personal finance, answer your questions every Friday.

Thanks to rising unemployment and an economy stuck in neutral at very best, more consumers than ever are struggling to pay their debts. Credit card delinquencies and charge-offs are both at record highs. Today, Ken and Daria help a WalletPop reader understand how debt charge-offs impact his credit and share solutions for managing his debt.

I heard that once your debt has been charged off, that your credit score never gets any better.So, is it a good to accept the offers I get to settle my debt by paying off 60-to 70% of it in exchange for charging off the rest?

--Hector

Looking for debt help? Visit Dolans.com to learn more about debt settlement and other debt management options.

Read Full Story
Credit Card Compare

Credit Card Compare

Whether you're looking for great travel rewards or low annual fees, find the card that's right for you.

Compare Now

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Large Numbers Of Horses Are Being Stuffed Into These Crates For A Despicable Reason Large Numbers Of Horses Are Being Stuffed Into These Crates For A Despicable Reason
13 People Recount Their First Kiss Horror Stories 13 People Recount Their First Kiss Horror Stories
Man Suspects His Wife Is Cheating On Him - Then His Daughter Reveals What's Really Going Man Suspects His Wife Is Cheating On Him - Then His Daughter Reveals What's Really Going