Debt write off

September 9, 2008

Mostly credit card companies tend to write off huge unsettled balances on credit cards after a certain period of time. This is because the credit card holder in not able to pay off credit cards and so once the company writes off the amount it does not have to pay tax to the government. Usually they sell these debts to private debt collection companies. On the up side the mounting late fees and interest charges are stopped and so help the person to get out of debt fast. But the down side is that the private companies might have harsher ways of collecting their debts from you. Many people might consider personal bankruptcy declaration at such times.

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