Member-only story
So you miss a monthly payment and swear you’ll get caught up next month. But then life happens and you miss a few more payments. Now you’re worried that the debt will get sent to a collector.
Is there anything you can do to avoid collections? And if it ends up going to a collector, what can you expect?
Fact: Collectors recouped almost $54.9 billion in missed debt payments in 2010 alone.
This information below can help you understand the collection process so you can make the right decisions a you move forward. If your debt is already in collections and you think you may be facing collector harassment, click here to ask for help .
Countdown to collection — when does a debt get charged off?
One missed payment doesn’t mean your debt gets sent to a collector. Even with two or three missed payments, you still have time to catch up before the creditor writes your account off as a bad debt.
In fact, it usually takes about six missed payments in a row before a debt gets sent to a collection. When you miss about six payments consecutively:
- The creditor moves the account to a “charge off” status. This means your account is frozen and you won’t be able to make any more…
