Oh, yeah, I've been turned over to collections a couple times, because of old bills that weren't paid that I was unaware of. One was a medical bill for $100 that I thought had been paid but hadn't (an error on my part); another was a vehicle tax bill (in which my former state even HAD my new address but still somehow neglected to bother to contact me before heading to collections - and it turned out in fact I didn't owe them a cent; I was able to give three separate reasons for why I didn't owe that money) for $35. It wasn't a matter of not being able to pay it. Knowing what has happened to me makes me laugh at that 35% number - it's certainly artificially inflated with stupid debts in situations like mine - someone goofs (me or someone else) and the debt just sits there unbeknownst to you, until you check your credit report, apply for a mortgage, or get something in the mail about it. This reminds me, we haven't checked ours lately... last time I did, I found a credit card for Wal-Mart on my record, a card I've never had.