When debt becomes 60 days past due, the bills will become more frequent. So will the phone calls.
The creditor is likely to put your debt in internal collections status on its books because it doesn’t look like you’ll be able to pay. You likely will be charged another late fee, and the account will be flagged to the credit reporting bureaus as being 60 days delinquent.
What you can do: It’s not too late to work out a payment plan with your creditor, though you may now have to pay a penalty.
You also may be able to ask for a hardship plan and pay a reduced amount, depending on the flexibility of the creditor and your financial circumstances.
“If you’re going to rehabilitate the account, now is the time to do it,” says Thomas Nitzsche, media relations manager at Clearpoint Credit Counseling Solutions, noting that “you’re one step closer to the debt being sold to collectors.”
You may want to seek advice. Credit counselors can help you budget your money and come up with a plan. An initial consultation typically is free.
The counselor may suggest a debt management plan, depending on how much you owe.
Learn more: Click on another stage in the debt timeline below, or return to the introduction.