Learning how debt works is the first step to overcoming it.

Unpaid debt doesn’t just go away — here’s what can happen:

• Collectors get aggressive – Your debt may be sold to third-party collectors who pressure you, even if they can’t legally prove the debt.
   
• You could get sued – Ignoring a court summons means they can win by default and come after your paycheck or bank account.
   
• Your credit tanks – Debt can stay on your report for 7+ years, hurting your ability to rent, finance, or get approved for anything.
   
• You might reset the clock – Saying the wrong thing (even over the phone) can restart the statute of limitations — and give collectors more power.
   

The worst part?
Many debts collectors pursue can’t even be proven in court — but people pay anyway out of fear.

No — they’ll show as “paid,” but still stay on your report for up to 7 years from the date of first delinquency.

Some programs focus on negotiating to pay less than the full amount. Others focus on making sure the debt is accurate and legally collectible before any payments are made. It’s important to understand your rights before choosing a path. 

A charge-off means the original creditor gave up on collecting the debt and likely sold it to a third party. That doesn't erase the debt — but the nature of the debt changes, and certain legal protections may apply.

Each state has a statute of limitations. After that period, collectors can’t sue you — but they may still contact you. Knowing whether a debt is still enforceable is an important part of protecting yourself. 

Sometimes, but not always. Paid collections still stay on your credit report for up to 7 years. Addressing whether the debt belongs there in the first place can have a more lasting effect.