Explaining Debt in Collection

1. Explaining Debt in Collection
By: Global Client Solutions

2. Explaining Debt in Collection
Since its establishment in 2003, Global Client Solutions has provided an online platform
for clients to manage their finances and handle debt transactions. As a member of the
American Fair Credit Council, formerly the Association of Settlement Companies, Global
Client Solutions commits to providing consumers with all of the information they need
regarding debt.

3. Explaining Debt in Collection
According to a 2014 Urban Institute report, approximately 77 million people in the United
States, a little over one-third of the adult population, have debt in collection marked on
their credit reports. Before placement in collection, the debt is first marked as delinquent,
which means the debtor has not paid the appropriate sum within 30 days of the due date.

4. Explaining Debt in Collection
Debts stay in delinquent status for approximately 180 days, after which the debt typically
gets passed to a third-party debt collection agency. The debt now enters collection status
and the debtor starts receiving letters from creditors he or she may not recognize.

5. Explaining Debt in Collection
A debt in collection gets recorded on the person's credit report for a maximum of seven
years. During that period, the debt in collection will make it more difficult to open new
lines of credit or attain loans.