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In this video, Adam Jusko explains the concept of a "charge off" as it appears on credit reports. A charge off indicates that a borrower has failed to pay a loan or credit card, typically after a prolonged period of non-payment. In such cases, the lender, usually a bank, concludes that it is unlikely to recover the owed amount and categorizes the debt as bad debt for tax purposes. This means they have officially written off the loan or credit card balance, acknowledging their inability to collect the debt. The video emphasizes understanding this term and invites viewers to subscribe to the channel for more insights.