1. Debt collection is the process undertaken by lenders to collect loan payments that are still due from the borrower's end. When you avail of a loan or a credit card, you would have to pay back the pending loan amount or your credit card balance on time. There is no specific time frame mentioned as to when lenders will chase you for your unpaid dues. There are agencies that will mediate and try to recover the money you owe. But if you avoid paying your dues, your credit score will also drop. Your defaults will be recorded in your credit report and will stay as a negative issue until you resolve them.
  2. Having a negative issue will impact your eligibility to get future credit. So if you are looking forward to taking a loan or a credit card in the future, you would have to pay off the overdue you currently have. Only after paying off your dues you will be able to avail of new credit.