Past due credit debt is a growing problem for many Americans. According to a 2009 National Foundation for Credit Counseling Financial Literacy Survey, in the last 12 months, 34 million Americans have been late making credit card payments and 18 million have missed making a payment. Not only is this a mark on the credit report, it could set the customer up to deal with collection agencies and possible law suits where their wages may be garnished to pay back the debt. There are ways to handle past due credit issues if immediate steps are taken to deal with the problem.

Contact the Bank or Credit Issuer

Acknowledge the late payment right away by calling the bank where the debt is located. Many banks are willing to negotiate for a lower interest rate or payment if they know you are willing to make the effort to pay something. Make sure you get all agreements in writing and follow the new payment plan religiously to avoid the bank sending the debt to collections.
Debt Counseling Services

It can be difficult to wade through thousands of dollars of unpaid debt without trained help. Using the services of a 3rd party accredited, independent credit counseling agency can help you create an action plan to get out of debt. Credit counselors offer debt ridden consumers solutions and guidance at a low cost. Choose an agency that is affiliated with a national body such as the National Foundation for Credit Counseling or the Associate of Independent Consumer Credit Counseling Agencies.

Debt Consolidation

When the consumer has several past due credit bills, consolidation may be a solution. Debt consolidation is combining several loans into one. Debt consolidation companies work with consumers and banks to transfer high interest debt into one low interest payment that is extended over time. This makes paying the debt more manageable for the consumer, but since the payment plan is lengthen, the consumer will pay more than actually owed for the debt.

Chapter 7 Bankruptcy

Bankruptcy should be the last solution explored when dealing with past due credit payments because it stays on the credit report causing financial headaches down the road. If this is the only solution available, your debts will be eliminated. This type of bankruptcy requires the debtor so sell off all non-exempt assets to pay back the debt.

Live within Your Means

The best solution to past due credit payments is to live within your means. Dealing with banks, credit counselors and debt consolidation companies is a headache no wants to deal with; but the resources are there if you need them to build back your financial health.