What are the steps to debt collection up until judgement?

Let's say I miss a payment on a 26,000 dollar debt and continuously miss that payment. What steps will the lender take for action and how long does it take for each step?





Also, what if you can't pay the minimum balance on the debt. Do you contact the bank and inform them of that and offer them a smaller amount? What actions do you take before you get to the points listed in the first question.





Thanks!!

What are the steps to debt collection up until judgement?
It really depends on who the lender is and what type of credit. If you miss a payment, it will show up on your credit report at the 30 day mark. Before that, you will probably start getting collection calls and past due statements.





After 90 to 180 days past due, your account will be sent to collections. Some lenders, including credit card companies, have their own collection departments. Some will assign the debt to a collection agency. And most will sell the debt to a collection agency. The collections will be reported to your credit file.





With a $26K debt, it is very likely that either the original creditor orthe collection agency will sue, win a judgment, then attach your bank account, garnish your wages, and lien your property. All of which further damages your credit.





If you are having financial problems, contacting the creditor is a good idea. Often they will try to work with you.
Reply:In today's tight credit world, you cannot afford to mess up your credit by being late with payments (or not paying). Pay off your debts, stop charging things to your credit card and buy only the absolute necessities (cheap groceries, rent, etc.). Cosmetics, magazines, dining out are not necessities.