The phrase “charge-off” originated as an accounting term. If you have missed payments that remain unpaid for more than 90 days, your account is charged-off, blocked from further usages, 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 time the debt was charged off. Therefore, it is very important to pay installments on time or reschedule payment if needed.