The phrase “charge-off” originated as an accounting term. If you have missed unpaid payments for more than 90 days, your account is charged off, blocked from further usage, and may be sent to a third-party collection agency.
Having a charge-off does not mean your debt is erased. You are still responsible for making payments (either to Sezzle or a third-party collections agency), and the charged-off debt can remain on your credit report for as long as 7 years after the debt was charged off. Therefore, it is imperative to pay installments on time or reschedule payment if needed.