April 7, 2017 Having a credit card in Malaysia has its advantages and disadvantages. It’s a good way to purchase and avail of your daily necessities. But it can also be a source of financial problems if you are not careful with your purchases. And of course, you need to make sure that you make your credit card payments in time. If you are not able to pay on time, your credit card will default, and this can hurt your ability to get approved for future credit card applications, loans, and other forms of credit-based services. If you default on your credit card, don’t worry too much because there are certain things you can do to either fix the problem or minimize the effects on your credit rating. Below is some financial advice in Malaysia coming from knowledgeable and experienced financial consultants. Pay it off. This is still your best option if you truly want to rebuild your credit rating and financial health. Always keep in mind that if you default, it will be much harder for you to apply for credit cards and loans in the future. But if you pay off the debt, this will serve as a sign to your creditors that you are serious about getting your credit rating back to normal. Negotiate to settle the debt for less the amount due. You should follow this strategy if you don’t have the cash nor the assets to fully pay your obligations. The majority of creditors are amenable to negotiations because they would rather get something even though it’s lower than the balance due. You need to approach the collection agency and inform them that you want to settle the debt. You have two main options: you can either settle the debt in installments or pay for it in a lump sum. The settlement will depend on how the negotiation goes. File for bankruptcy. This is a hard pill to swallow, but it’s the only option left if you can’t pay the debt in full or negotiate a settlement. Filing for bankruptcy will restructure your debt so that it will be more affordable. If you’re fortunate, the debt might even be discharged. These are the options you have when it comes to dealing with a defaulted credit card. It’s highly recommended that you choose either option one or two. These would help you get back to your regular financial standing. If you decide to declare bankruptcy, you will have to live with the consequences for the next several years.