Joining a gym is a great way to get in shape and meet new people. However, even with the best intentions, it’s not unusual for people to stop hitting the gym and start relaxing after work on their sofa.

While some people make a point of canceling their unused gym memberships, others may forget, letting it go by the wayside. What’s the worst that can happen? The gym sends you a bill and you pay it, right?

If you’re not sure whether your account was sent to collections, Keel Associates is here to help.

Here’s everything you need to know before you stop going to the gym:

FAQ About Collections?

Unfortunately, not every gym takes the time to reach out and let members know their account is in arrears. Your gym membership is no different than other monthly bills. If you don’t pay them on time every month, your account could be sent to collections, which can lower your credit score.

Sadly, once you’re turned over to collections, not only does your credit score suffer, but you’re also put an automated call list by the collection agency. Legally, debt collectors can call you as many times as they want up until 9:00 p.m.

Contracts Are Legally Binding

Any company you enter into a contract with is obligated to send you written notice of past due balances. Typically, you will receive a bill every month, which is how a company reminds you to pay. Obviously, if you don’t pay the bill, the company has the right to withhold their services from you and even turn your account over to collections.

Unfortunately, your gym membership is no different. If you entered into a contract but don’t make timely payments, your gym has the right to collect any money that’s due.

Keep in mind that even if you unintentionally forget to pay but have signed a contract, your gym can take legal action to collect the money you agreed to pay. This includes working with outside collection agencies and even filing suit against you in court.

For this reason alone, it’s important to weigh the pros and cons of entering into a long-term contract with your gym. If you aren’t serious about using it, you might be better off paying as you go.

Will This Affect Negatively Affect My Credit?

Being turned over collections will negatively impact your credit, and it doesn’t matter how small the amount.

In turn, when you go to apply for other forms of credit or even rent an apartment, lenders may consider you a high-risk applicant and deny your application. While paying the debt off does help, it’s always better to prevent having it reported in the first place.

Final Thoughts

Even though no one plans on being sent to collections, it does happen. However, there are ways to avoid ruining your credit. If you can’t make the monthly payments, talk to your gym. They might be willing to work something out with you. If not, you may need to enlist the help of a financial adviser, like the ones at Keel Associates. Together, you can create a repayment plan that works for you