Paul Collins was born in December 1954 and grew up in Smithboro, Kentucky. His father hailed from Irishman Creek, a region impacted by the construction of a dam, while his mother's family resided in Smithboro. Paul's maternal grandfather, John J. Amburgey, was a schoolteacher and merchant, running multiple general stores in the area alongside his brothers. Paul spent his childhood in Smithboro, where his family operated a general store that evolved into a department store.