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In today's economy, isn't just common. For many people, it's a necessity. From covering rising grocery bills to managing emergency expenses, more people are leaning on this type of short-term borrowing just to stay afloat. But if you're using credit cards to fill in the gaps and those balances spiral out of control, , the consequences can be serious. If you fall too far behind, you might even get hit with a charge-off notice, which is a sign that your credit card issuer has written off the debt as a loss.

But here's the reality of the situation: While a charge-off means the lender is considering your debt a loss, it doesn't wipe your slate clean. It simply means the original creditor no longer expects to collect the money you owe. You're still legally on the hook for the balance (along with the interest and fees), and the charged-off account can damage for years on end. It may even end up , triggering constant calls, letters or a lawsuit.

Fortunately, you're not out of options if this happens. Whether you want to resolve the issue quickly or are looking for longer-term relief, there are several ways to deal with your charged-off credit card accounts now.

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With a charge-off, the debt is still legally owed by you, so you'll want to deal with the issue as soon as possible. Here are a few ways you can do that now:

If you have the cash available, paying off the entire charged-off balance is often the cleanest solution to dealing with this type of debt. This approach , prevents additional fees and interest and shows future lenders that you ultimately made good on your debt. 

While the charge-off will still appear for seven years, having a zero balance looks significantly better than an outstanding debt. The downside? You'll pay the full amount when you might have been able to negotiate for less. 

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Many people don't realize that creditors will often  than what's owed on charged-off accounts. Depending on how old the debt is and the creditor's policies, you might than the original balance (on average). So, this option can save you substantial money while still resolving the debt.

The key to successful settlement negotiations is having cash ready and being persistent. Start by offering 25% to 30% percent of the balance and work your way up. And, be sure to get any settlement agreement in writing before sending your payment. 

If you can't afford a lump sum but have reliable income, your creditors may work with you on a payment plan. This approach allows you to chip away at the debt over time while demonstrating good faith effort to repay what you owe. Payment plans typically involve monthly payments over 12 to 36 months, and some creditors may even reduce the total amount owed if you stick to the plan.

Before agreeing to any payment plan, though, make sure you can realistically afford the monthly payments. Missing payments on a settlement plan can and potentially lead to legal action. And, be sure to clarify whether interest will continue accruing during the payment period, too.

Sometimes the best approach is to challenge the debt altogether. If you believe the charged-off account contains errors, whether it's the wrong amount, not your debt, has already been paid or is past the statute of limitations, you can . 

With this route, you'll within 30 days of first contact from a debt collector, requesting proof that you owe the debt and that they have the right to collect it. If they can't provide adequate verification, you can dispute the account with credit bureaus. 

Charged-off accounts automatically fall off your credit report after seven years from the date of the first delinquency. So, in some cases, the best strategy might be to do nothing and your credit report. 

But while this option doesn't cost money upfront, it does mean living with damaged credit for the full seven-year period. Creditors can still attempt to collect the money owed during this time, and in some states, they if the debt is large enough. 

Charged-off credit card accounts can be tough to deal with, but they're not the end of your financial story. Whether you're ready to pay it off, negotiate a settlement or dispute the debt entirely, there are multiple ways to tackle the problem. However, you'll need to choose the approach that fits your financial reality and take action before things get worse. Ignoring a charged-off account won't make it disappear, but the right strategy can make it far less painful.