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Discover Credit Card Account Charged Off. What Now? – Greg

I have $13,000 worth of credit card debt that has been charged off. The account is still being held by the Discover Card. They haven’t sold it off…..yet.

I also have another account with Discover, but I am up to date on it and have never been late..

I also have a Chase CC that was nearing charge off status, but I have set up a payment program with them.

Other than those 2 accounts, I am current on all other bills.

My questions—

The account with Discover that has charged off, did so very recently. I have contacted them and want to begin a small monthly payment to eventually pay it off. It may take me 5 years to pay it off. Should I enter into this payment plan or just let it sit and try to collect enough for a lump sum settlement? Either way, it will take a very long time to pay off. I am worried about my credit.

What are the odds that Discover will try to sue me over this account?

Should I stop paying on the other Discover account since my credit with them is already destroyed?

I can certainly add more details if you need them. Any advise is much appreciated.

Thank you,


Dear Greg,

Defaulting on the second debt is not going to help you unless you want to add a second negative entry to your credit report.

I’m not clear exactly why the first Discover account charged off when you were current on your other credit cards. Was it just too much? What led to the charge off?

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Greg

    Thank you for your reply Steve. Yes, the Discover account that was charged off was just too much for me to afford. I lost track of how long it had been since a payment had been made. Unfortunately, it had been too long and they charged it off. I realize it’s my responsibility, but had they warned me, I would not have let it get to charge off status.

    So what now? They want me to set up a payment plan, but the payments are so low that it will take 5+ years to pay them back. As I understand it, the charge off will be on my credit report for 7 years from my last payment. If it takes me 5 years to pay it off plus another 7 years for it to leave my CR, that’s 12+ years! Is that ino correct?

    Any advice? I can only afford small payments but do not want a bad credit rating forever.

    • Steve Rhode

      Let’s start with the basics.

      I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth. It will give you a great overview of what we need to deal with to get you moving in the right direction.

      Then use the free How to Get Out of Debt Calculator to review your options.

      After that, come back here and comment about what seems to make the most sense and let’s discuss that.

      Does that sound like a reasonable approach?


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