In today's episode, we're diving into Step 3: Handle Charge-Offs & Rebuild Payment History.

Here's what you'll learn in this episode:

✅ What a charge-off really is — and why the debt doesn't disappear

✅ How charge-offs can drop your credit score by 100+ points (and stay for 7 years)

✅ Your strategic action plan to verify, negotiate, and handle charge-offs

✅ How to settle charge-offs for 40-60% of the balance

✅ The power of goodwill letters

✅ When to pay a charge-off vs. when to let it age off naturally

✅ How to rebuild payment history — the #1 factor in your credit score (35% of FICO!)

✅ 6 proven strategies to build positive payment history fast

This episode gives you the exact roadmap to handle one of the most damaging credit issues and start rebuilding the foundation of good credit: consistent on-time payments.

Plus: We recap Steps 1 & 2 for new listeners, so you're never lost!

Action Steps:

1️⃣ List all charge-offs on your credit reports

2️⃣ Check your state's statute of limitations on debt

3️⃣ Draft negotiation letters (aim for 40-60% settlement)

4️⃣ Set up automatic payments for ALL current accounts

5️⃣ Apply for a secured credit card or become an authorized user

6️⃣ Sign up for Experian Boost to report rent and utilities

7️⃣ Write a goodwill letter if you had a one-time hardship

Remember:

Every month of on-time payments is another step toward financial freedom. You're not defined by your past mistakes — you're defined by what you do next.

Payment history is 35% of your credit score. Master this, and you're on your way to 700+!

Follow the journey on Instagram @FinanciallyFreeWithLT

If you have questions or want personal support:

📩 Drop a comment

📱 Send a DM on Instagram

📅 Schedule a free financial coaching session

We're building financial freedom together — 100,000 strong by 11/11/2026.

Let's tackle those charge-offs!

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