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Quick Guide to Collections

Collections refers to any debt that is owed to a creditor. If you fail to pay a bill, after several months, your creditor can place your account in collection status. Once this happens, the creditor will use a debt collector as a way to get the money that you owe to them.

Collections that show up on your credit report can have a drastic impact, which will negatively affect your credit history and can decrease your chances of qualifying for any sort of financial assistance in the future. Keep in mind that collections can stay on your credit report for up to seven years, so this is definitely something you will want to avoid.

Sample Description of Collection

"We need an e-commerce website for our clothing company. - Currently www.yourbusiness.com. Our products change on a regular basis, so we need to be able to easily change text, pictures, prices, and product descriptions. We currently sell 40 unique products. We have a budget of $2,000-5,000, but we are looking for the best price. We would like to launch the site within 60 days."