Having bad debt means that you owe so much money to your creditors, yet you are not in a position to pay them up.
In such cases, it is wise to seek the services of experts who can advise you accordingly.
To begin with, you can opt to consolidate your liabilities and deal with them.
Consolidation of debts simply refers to the process where you combine all of them into one single liability.
The process is not as easy and it calls for the expertise of those who specialize in these services.
What happens is that they will notify all your creditors on what you are planning to do.
They will then negotiate with them on what amount they will deduct from the liability and allow you to pay the remaining balance.
Once all the figures have been acquired from all the creditors, a percentage of how much you will be paying per month is calculated.
Once you make your monthly payment to the consolidation firm, they will divide it accordingly among all your creditors.
However, note that they do this for a fee and you therefore have to include it in your monthly deposits.
They will charge you on the basis of the level of your bad debt and the success of having some of your liabilities forgiven by the creditors.
Another way to consolidate your liabilities is to apply for a loan which you will use to clear all your debts.
This means that you will do away with the many interest rates that you have to pay on each individual loan or debt that you owe.
At the end of the day you will save much more because you will be left to pay one single liability at much lower interests.