Debt settlement and charge-offs can leave marks that take years to fade, but one has a much more detrimental impact on your finances. Virojt Changyencham/Getty Images

Falling behind on credit card payments is a common issue borrowers are facing right now, but when it happens, it can trigger a chain reaction that's hard to stop. At first, it might mean being charged a few late fees and dealing with collection calls . But if months pass without payment on the account, your credit card company may eventually give up on collecting the balance and charge off what's owed . That may sound like it would offer relief, but it doesn't. You still owe the money, and a charge-off leaves a serious mark on your credit report , one that can take years to recover from.

Some borrowers opt

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