Due for Credit Cards payments

Outstanding Credit Cards debts owed

Saddled with huge amounts of credit card debts or being unable to finance loan repayments, this is where counseling takes place and act as the mediator for both debtors and creditors. Why is there a need for middleman? In the first place, the credit firms may pursue legal actions by sending lawyer letters without warnings to borrower's house. Hence, having no choice to pay up, the lendee has an option to turn to credit counselors by engaging their services to put an end to this rolling interest rate misery. However, not all credit reporting agencies are willing to lend their arms and typically interview the borrowers on a case-by-case basis.

What type of Borrowers can seek help?

The million dollar question is who can request for financial assistance from credit counsels in order to savage his current liability. Anyone! In general, counseling services are open to public so everyone has the chance to voice out their concerns and express resentments. However, there is a catch and not all visitors will be aided and has to undergo mandatory screening process. The needy may be attended first such as lack of social safety nets or past bad credit rating trying to apply for housing loans to facilitate payments.

The credit counsel agency does not have convincing powers to rule over creditors' authority and the final decision is still based on the credit lenders ultimately. These ruthless creditors might not concur with any agreements, forced their way through, bring issues up to the jurisdiction and adopt repossessions.



One of the most depressing moments is to see credit card debt pile up like mountain but having few options like bankruptcy or long term reparations - the last thing anyone will ever want to encounter. In fact, many indulge in high-end lifestyles that demonstrates lack of financial prudence, ending up in the state of horror when due for principle credit payments.

How can you avoid such bad Credit ratings?

Negative credit issues can be avoided such as not taking up any credit lines regardless of current financial status, flourishing or degrading, to prevent any potential damages at all. First things first, upfront reject any credit officers who attend to you, telling them you have sufficient cash for monthly expenditure. Another alternative is to force savings from monthly income by setting up a salary-debit account. Root in some 20%-30% of savings on a religious basis.


If there is a need to take up loans, more towards mortgage credits or education loans, adopt a conservative approach and ask lots of questions that benefit you in every way possible. Ensure that interest rates are fixated or identify monthly mortgage installments beforehand. All these will help in preparations to tide through any unforeseen circumstances should an economic downfall occurs.


Lastly, considerably most important, acquire as much Credit Knowledge as possible to redeem yourself from being a wage slave. More importantly, avoid making hasty decisions in the realm of finance and join finance talks regarding the relevant credit matters by subject matter experts. Learn to ask relevant questions pertaining to credit reports and referencing agencies before committing to any lenders. This is vital to ensure a healthy financial status for an indefinite period of time.


Not only is this beneficial to borrowers in the long term, but also provides insightful knowledge to negotiate credit card debts and outstanding loans in a diplomatic manner while leveraging on business laws.