It has been a recent concern for Americans to handle their increasing debt and the implications that come with it. With every passing year debt is becoming a more pressing issue for the average American, rising to about $11.67 trillion approximately per household across the U.S. according to the Federal Reserve Bank of New York, with the average American holding about $96,371 in debt. With this, a pressing question arises, does this debt entail debt collection for each of these debt holders and does debt collection affect credit score? The short answer is, yes it does. Having even one account in collections or a debt collection process means that your average credit score is in trouble. A credit score is a numerical representation of your creditworthiness based on your credit history and any part of that which is being pursued by a collection agency will affect your credit score.
