When you fail to pay back a debt (with loans,this is referred to as "defaulting"),it gets sent to collections. Sometimes this is a separate department at the lender itself,but most of the time,the lender sells the debt to a collections agency.
The timeline for debts going to collections can differ for each creditor,type of debt,and specific situation. To avoid having your debts go to collections,staying in touch with your creditors and working out a payment plan or getting help if you're having trouble making payments is best. Learn more