When you are faced with a charge-off, there are two main things you can do: pay in full or settle the charge-off. Each option has its own set of pros and cons, so it can be difficult to decide which is the best option for your situation. Paying in full is the simplest solution. You will completely erase the debt and avoid any potential consequences associated with a charge-off. However, paying in full can be difficult if you don't have the money available. Settling a charge-off is less risky than paying in full. If you settle, the creditor will likely report the settlement as paid in full on your credit report. However, there is always a chance that they could report it as settled for less than what you owed. This could damage your credit score and make it more difficult to borrow money in the future.