I get asked this question quite often. The reason this question comes up is because the Debt Collectors threaten people by saying: "If you don't pay in 30 days, we are going to put it on your credit" or "We are going to put a charge off on your credit."
People get scared when they hear this because it goes right to the heart of their fears. I'm about to get psychological on you. I believe that people want to pay their debts, and when they cannot pay the bills as they come due, it weighs very heavily on their minds and crushes their self-image. So, here comes the debt collectors with their "piling on" mentality, just throwing out more insults and threats to scare the already beaten down individual.