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In this video, Adam Jusko explains the term "charge off" in relation to credit reports. A charge off occurs when a borrower fails to repay a loan or credit card, prompting the lender to write off the remaining balance as bad debt after a specific period. This typically happens after attempts to collect the debt have been unsuccessful. Lenders categorize this action to manage their finances for tax purposes, indicating that they no longer expect to collect the debt. Adam encourages viewers to subscribe to his channel for more informative content.