When a consumer owes money to a company and is not paying or is unable to make the minimum payment, sometimes the company will turn the debt over to a collection agency. A collection agency is a business that arranges for the payment of outstanding account balances and money owed to a company.

Co-signing can be viewed as a gesture of support, helping someone qualify for a loan when they might not meet the eligibility criteria on their own. It can be a way to provide financial support to loved ones, but it is important to understand its potential impact on the co-signer as well.