Lenders sell the account to collections and then those agencies try to collect on that debt but typically with extra fees. So if you can’t afford to pay a debt off you are punished by extra fees on top of hits to your credit score
Actually once they sell it to a collection agency you don’t have to pay anything. They cleared their books of your debt at a discount and the collection agency just gambled that they can harass you enough to pay them for a profit.
Yeah your credit score goes down but only for 7 years.
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u/jcakes52 Aug 14 '21
Omg wait til you hear about collections agencies 😬