No, its okay. They send it to a debt collector to collect the money for them, so they don't have to spend time chasing you. It takes ages to get on to your record, and if you have an arrangement in place (as long as you haven't defaulted with the original provider usually) it won't show up. Even then, you usually have to default on your payment plan with the collector a few times before its listed.
If it does get onto your record, once it is paid off you can apply to have it removed.