Posted on August 24, 2009 at 7:52 pm Hey everyone ... I am in need of solutions on how to fix bad debt. Most of my credit cards have charged off and are totalling a balance of $18 thousand. I need to get out of this mess in order to build back my previously good credit rating (I used to have  around a 700+ credit score) and any input on this matter will be greatly appreciated. Thank you so much!

Posted on August 24, 2009 at 11:38 pm One of the best ways on how to fix bad debt is thru a debt settlement. More often than not, creditors are more forgiving and are more willing to give a consumer a lower settlement amount, given that the debt has already been written off as an expense. You may either settle via doing it yourself or hiring the services of a debt settlement company.

Posted on August 25, 2009 at 12:17 am Is debt settlement a viable option for charge offs? I like the idea of a do-it-yourself method, but what are the chances of success?

Posted on August 25, 2009 at 1:38 am It may prove to be quite a challenge, out from under--most creditors, like BoA and American Express for example, may agree to 50% settlements--and in my understanding, this is regardless of the delinquency status of the account. One thing you might want to do is ask for a settlement offer from the creditor and negotiate with them from there.

Posted on August 25, 2009 at 2:49 am How about getting a bad debt consolidation loan? Would that work? Read an internet article on that, it seemed pretty interesting to me.

Posted on August 25, 2009 at 2:57 am Getting a loan to pay off another loan? That's nuts. That would put you in even deeper debt. Sure you may be fixing it in the short-term but really it doesn't work that way. You'll just be putting an additional burden on yourself.Consolidate your debt instead. And if push comes to shove, file for bankruptcy--only if you no longer have any options left.

Posted on August 26, 2009 at 2:13 am Isn;t consolidation the same as getting a loan??/

Posted on August 26, 2009 at 2:46 am Well, not really. Debt consolidation is also an umbrella term for other debt relief methods such as debt settlement and debt counseling. Debt settlement was mentioned earlier as a solution on how to fix bad debt. One good thing about this method is that you are able to pay just a particular portion of your debt and the rest of it will be forgiven. The debt amounts depend on what has been agreed on between the creditor and the negotiator. It will also take you at least a year to three years before the debt would be settled.If you want to know more, you can also log on to DestroyDebt.com and fill out a form on the main page. From there you'll be matched with a qualified provider who will be able to help you out on your situation. The service is free, so it won't hurt.

Posted on August 26, 2009 at 4:56 am how to fix bad debt if u are unemployed?

Posted on August 26, 2009 at 9:25 am There are a few options for people wondering how to fix bad debt? And by "bad debt", most people mean that they haven't made payments in a while, the debt is in collections and most likely charged off. Perhaps the best option has been mentioned- debt settlement- since an account must be past due before the lender/collector has any incentive to negotiate the principle amount of debt. If you have any money in savings I would suggest taking that route right away. To address the "do-it yourself" method. Not a terrible idea, particularly if you have experience in negotiations. However, you may not be familiar with the internal policies of whoever is collecting, so it is unlikely you will have any idea of how low you could settle for with them. And keep in mind it can be very time consuming and take a lot of effort, so if you aren't prepared to dedicate yourself to getting the best results you may want to seek professional assistance.