💡 Credit Tip Tuesday with Micah Abigail!

By Micah Abigail LLC | 2026-06-02

Let’s talk about charge-offs — when to pay them, and when to pause before you do. 👀

Here’s the truth: not all charge-offs are created equal.

Before you pull out your wallet, here’s what you need to know:

1️⃣ Check the age of the debt.
Every debt has a clock — it starts ticking from the date of your first missed payment (aka the “date of first delinquency”).
💬 Not sure what that is? No worries — our team can help you find it.
🕰️ Every state has a different statute of limitations — that’s how long a creditor can legally sue you for that debt.

2️⃣ Know your type of charge-off.
👉 Revolving account (like credit cards): Even in collections, your balance-to-limit ratio still affects your score.
👉 Installment account (like car loans or personal loans): The size doesn’t matter — a $40,000 loan carries the same weight as a $0 loan once closed.

So what does this mean?

✅ Sometimes it makes sense to pay off a revolving charge-off first, because it can move your credit utilization — and your score — in the right direction.

🚫 Other times, paying an old installment charge-off or OLD Credit card charge-offs might not help your score much at all. In fact it usually takes you backwards!

At the end of the day, every situation is unique. That’s why we always say:

💬 TALK TO US before you pay!

At Micah Abigail Credit Consulting, we don’t guess — we strategize.

Our mission is simple: help you move the needle forward.

And if you follow the plan, that’s exactly what we’ll do. 💪

✨ Let’s move your credit in the right direction — together.

Micah Abigail – Where Purpose Meets Performance — and Partnerships Create Results.

🎙️ Don’t Forget: New Podcast Episodes Drop Every Wednesday!

Looking for inspiration, strategy, and real-life success stories? Tune in to our podcast:

🎧 “Rebuild and Rise” — New episodes every Wednesday!

You’ll hear expert advice, powerful personal stories, and practical tips to help you rebuild your credit, rise above financial challenges, and live life on your terms.

🔗 Here’s how to listen and share:

▶️ Watch on YouTube
🎧 Stream on Spotify
🍏 Listen on Apple Podcast