After 30 days, a creditor may start the collection process. Many creditors have in-house recovery teams that will try and collect the debt. Or the balance may be sold to a third-party debt collection agency. In that case, you would have to pay the collection agency directly.
After six months the account may be charged off. This means that, while you still owe the full amount, the issuer writes the account off as a loss and closes the account. This action will also be reported to the credit bureaus.
The best way to handle this situation is to address it head-on. First, ask the debt collection agency for proof that the debt belongs to you. Once you’ve received that proof, you can try to negotiate with the collection agency.
If they agree to report the debt as settled on your credit report, offer to pay them a small portion of what you owe (10% of the original balance, for example). If they won’t accept less than the full amount, then ask if you can set up a small monthly payment plan.