Debt Relief:Collection Agency

A Collection agency is not the same as a debt counseling service. Collections agencies are employed by creditors to recover money owed to them.

Creditors wait from six months to two years before turning a bad account over to a collection agency. There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt.

The following information was gathered in an interview with the manager of a local collection agency:

• A collection agency goes after an individual who will not pay a debt. this debt is anything from medical bills to florists bills.
• Creditor may not seek a collection agency help for 6 months to 2 years after the debtor is delinquent.
• Reasons why debtors do not pay varies. Some reasons are poor money management skills, illness, and lack of desire to pay what is owed.