When a lender gives up on collecting a debt (typically after 120-180 days of missed payments) and writes it off as a loss. Don't let the name fool you—this doesn't mean your debt disappears. The charge-off stays on your credit report for seven years and can severely damage your credit score. You still owe the money, and the debt may be sold to a collection agency. Think of it as your lender officially saying "we're done trying," but the consequences stick around much longer than the relationship did.