- 1). Verify that your debt was charged off. A good way to see if your debt has been charged off is to contact each of the credit bureaus---Equifax, Experian and TransUnion---and get copies of your credit report. If the status of anything is listed as "charged off," then that is proof that your debt was charged off.
- 2). Find out who has the debt. Many companies sell their bad debt to a collection agency, so if you have a credit card that was charged off, it may be the property of a collection agency now. Call the company with which you incurred the debt to see if it still has the debt. If not, company representatives can tell you to whom it was sold. You will also want to look at copies of your credit report to see if a collection agency is listed on the debt.
- 3). Contact the company you have the debt with. Once you know who has the debt that was charged off, you should give the company a call. Many times, contact information will actually be listed on your credit report. If not, try looking for the contact information at Yellowpages.com. Once you reach the company, explain who you are, and ask if you can settle your debt.
- 4). Let the company know what you can pay. Typically, the company you have the debt with will want to recoup as much as possible. Do not let yourself be talked into settling for an amount that is more than you can pay. Explain how much you can pay, offering to "settle the debt in full" for that amount.
- 5). Get written confirmation. Before handing over any money to settle your charged-off debt, ask for confirmation of your settlement agreement in writing. Once you receive it, be sure to look over it to make sure that everything is accurate. If it is not, call the company back and ask for a revised copy of the settlement agreement.
- 6). Send your payment to settle the charge-off. Once you have everything in writing, you can settle your charge-off. Mail either a check or money order in the appropriate amount with a notation on it stating that cashing the check/money order serves as payment in full for the charge-off. Also include a copy of your settlement agreement and a separate note stating that if the check/money order is accepted and cashed that the company is accepting it as payment in full for the charge-off.
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