How to Fix My Credit After My Credit Cards Have All Been Charged Off

A credit card company may "charge off" your account after 180 days or six months of being late on payment. Just because your account is charged off does not mean that the credit card company has given up collecting the debt. The account is typically sent to in-house collections or an outside agency where it is reported to consumer credit bureaus and appears on your credit report. Fixing your credit after a charge off requires you to develop a budget to repay the debt, contact creditors to work out a payment arrangement and possibly hire a credit counseling firm.

Instructions

1

Develop a budget. Calculate how much money you make each month and how you spend it. Look at your pay stubs for income information. Inspect receipts and credit card and bank statements for information on how you spend your money. Write down the expenses that are necessary each month. This includes your mortgage or rent, insurance, food and utilities. Separately list the expenses that are unnecessary. This may include entertainment, clothing and recreation. These expenses may be used to pay off debt.

2

Contact your creditors. Tell them you are serious about repaying the debt but need some assistance. Ask if they would be willing to work out an installment plan with you that is within your budget. The creditor may advise you to contact its debt-collection department or firm.

3

Contact a credit counseling agency. If you cannot adhere to the budget you created, keep track of your expenses or work out an installment plan with creditors, you may consider hiring a credit counseling agency. It can offer advice on managing your money and maintaining a budget. It can also provide assistance with debt collectors. Note that credit counseling agencies charge a fee for these services.