Owing to these reasons, such counselling can be expensive, owing to the not-so-insignificant administrative costs involved. A credit counselling agency often receives most of its compensation from the creditors to whom the debt payments are distributed. This funding relationship could lead to the impression that credit counselling agencies are merely collections wings of the creditors.
It is therefore essential to guard against these undesirable possibilities. In many instances, nurturing a borrower back to health after a default can be a time-consuming process, besides causing severe inconvenience for the distressed families. Traditional banking technologies rely mainly on a set of pre-assigned standards to determine whether a potential borrower will be able to service a loan.