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In this video, Adam Jusko explains the concept of a "charge off" as seen on credit reports. A charge off indicates that an individual has failed to pay a loan or credit card, typically after a prolonged period of non-payment. Once the lender, such as a bank, determines that the debt is unlikely to be collected, they categorize it as a charge off, effectively writing it off as bad debt for tax purposes. This means they no longer expect to collect the owed amount, which can have significant implications for the individual's credit score. Adam encourages viewers to subscribe to his channel for more insights.