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In this video, Adam Jusko explains the concept of "charge off" as it appears on credit reports. A charge off indicates that a borrower has failed to make payments on a loan or credit card, typically after a significant period of non-payment. At this point, the lender, such as a bank, concludes that the borrower is unlikely to repay the debt and writes it off as bad debt for tax purposes. This means the lender acknowledges that they cannot collect the debt. Adam encourages viewers to subscribe to the channel for more insights on similar financial topics.