When you miss payments on your debts, you’re not the only one who gets into trouble. Your creditors, the businesses that you owe money to, also feel the crunch. For every month that you don’t pay, they will lose more and more money. For smaller businesses, this can be devastating.
This is where debt collection agencies come in. When companies find that pursuing you for payments is taking too much time and resources, they turn over your debt to collection agencies. The debt collection agencies usually focus on recovering money from overdue accounts. These agencies collect debts for a certain fee. Sometimes, they offer services in return for a percentage of the debt that they are collecting.