The term blacklisted is quite general and can apply to a number of situations a credit consumer would find themselves in. It could be related to having an account in arrears or possibly having a judgment against you.
What is very important for the consumer who has been blacklisted to understand is that even if you settle your outstanding debts, your credit profile is tainted with the blacklisting for at least two years in some particular cases as long as five years.
If you have failed to make scheduled payments and fallen behind, then your credit record will show this, but no legal action has been taken yet. At this stage, you are able to approach your credit provider and make an arrangement to settle the debt and catch up on back payments.
If you are really sinking under debt and have a number of accounts in arrears, then it would be in your interest to contact the National Debt Mediation Association, a non-profit organization that can assist you with negotiating terms of the settlement with your existing creditors.