Debt collection refers to a kind of account that has been handed over to a third party by a company. The livelihood of debt collectors depends on recovering unpaid bills of businesses. The company to which you owe money often passes on your account to a bill collecting agency when you fail to make timely payments. Businesses find it more expensive to spend their resources for bill collection, compared to hiring debt collectros. Different lenders or creditors follow different strategies for handing over their unpaid bills to bill collectors. On examining your agreement with the credit card company or loan provider, you`ll know the schedule of payment you need to follow. Credit card companies usually send the unpaid amount to professional bill collectors after bills remain unpaid for 180 days. Many other businesses may take the same action soon after one or two months or after one or two payments are not made.