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Bad Debt Advice and Help

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Mark Cappel
UpdatedMar 29, 2023
I am in bad debt and don't know what to do.

Hi. I am in bad debt and don't know what to do. i have been notified by some of my creditors that they have been sold or something. i haven't been able to make any sort of payments for a while. i want to know if i could get your help as to what i should do, and if i start making some sort of payment i will be in the clear of collection or something. i can 't afford to pay the interest they have racked on. please help. thanks bill.

There are several possible solutions to your problem, depending on how much money you can afford to allocate to your debts on a monthly basis.

Very quickly, if you want to apply for help with one of Bill's approved debt help partners, click here:

Debt Relief Savings Quote

Now, onto to some advice for you:

Unfortunately, simply making payments will likely not take your accounts out of collections. You would need to contact your creditors and negotiate a payment arrangement with each creditor. If your creditors will not work with you, or if the payments they demand are larger than you can afford, there are professionals who may help solve your debt woes.

One option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. There are several drawbacks to CCCS, though. First, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, it may have a negative impact on your ability to obtain a loan, so you may not wish to enter into a DMP if you anticipate any large purchases, such as home or an auto, in the near future. Third, the average DMP takes around five or more years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan.

You may also want to consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though ?they will significantly damage your credit while in the program and for at least a year or two afterwards. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of ridding yourself of credit card debt.

Bankruptcy may also solve your debt problems. If you are considering bankruptcy, I encourage you to consult with a qualified bankruptcy attorney in your area.

Again, if you want a free consultation and a savings quote, makes it easy for you to apply for qualified providers by following this link:

Debt Relief Savings Quote

Depending on your income and the type and amount of debt, one of the several options I have described above may be able to help you. I encourage you to explore the website,

Read more about these and other options available to you ?we want to help you Find. Learn. Save.

Best of luck,


Struggling with debt?

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2022 was $16.91 trillion. Housing debt totaled $12.26 trillion and non-housing debt was $4.65 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Each state has its rate of delinquency and share of debts in collections. For example, in Rhode Island credit card delinquency rate was 3%, and the median credit card debt was $394.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.

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