Collections
Debt, arrears & collectionsA stage where overdue debts are actively pursued for repayment.
Overview
Accounts in collections have usually missed multiple payments.
Collections activity can be handled by lenders or third-party agencies.
Why it matters
- It is a serious negative signal to lenders.
- It can lead to defaults or court action.
- It can affect access to future credit.
FAQs
Does collections mean my debt is defaulted?
Not always, but collections often happen before or after a default.
Can I negotiate a payment plan in collections?
Often yes. Many collectors will agree to payment plans.
Related terms
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