We all want to make it go away. The bad debt, the worry about interest rates and dropping credit lines. Fixing and coming up with the answer to bad credit solutions in a very difficult and tight credit market is not easy. This article will outline what steps you can take to build your own credit solutions, why debt negotiation companies are under fire; why consumers are getting hammered on both ends and should be mad as hell; and what you can expect on the other side of bad credit.

Most debt solution articles start with incredibly simple advice. Dave Ramsey, syndicated national advocate of getting out of debt, has a painful way of getting it started. Sell it all. Really! Sell everything you have and pay down or eliminate your debt. I don't know if that's one of the credit solutions you had in mind, but it will work. Pay off your debt as soon and as quickly as you can. That's just not practical for most people, or we have so much emotionally invested in owning our "stuff", we aren't going to entertain that idea.

Here's a list of credit solutions you can take.

• Pay Off Your Debt
• Credit Counseling
• Renegotiate rates with creditors
• Debt Consolidation loans
• Debt Settlement
• Bankruptcy

We covered the first option. There are few of us who wouldn't pay our debts if we had the capacity. Unemployment, disastrous financial decisions, maybe even health problems, are just a few of the issues making paying off debt immediately one of our unlikely credit solutions. For those who don't know of the "snowball effect" of paying off debt, its a relentless method of knocking out debt by placing everything on hold and focusing all your energy and money to paying the debt. Pay off the highest debt first (interest rate) and move down the line to the next one.

Credit counseling is another one of our credit solutions. In this scenario, an outside party helps you to build and stick to a budget to get control of your expenses. The third party may offer to send letters, or make contact on your behalf with creditors to reduce interest rates or payment levels. These services are normally free or at low charge. You need to have income to accomplish this, but it can be an effective credit solution.

Renegotiating rates with creditors won't solve your credit problem, but can help you get a handle on how much is going out the door. Banks have come under fire recently for predatory lending. Isn't it interesting that the same banks who took handouts from the Federal Government (the taxpayer) are now screwing the taxpayer with interest rates at 30% or higher on credit cards. In early November, the U.S. House of Representatives passed an additional law to the "encourage" banks not to engage in practices that will be outlawed when the Credit Card reform act goes into full force after the new year. The original bill gave banks nine months to get ready for the new regulations. The banks have used those nine months to slash and cancel credit lines, hike interest rates by more than 20% and tack on numerous additional fees. The House bill is unlikely to pass the Senate, so its likely banks will continue to hammer their customers.

Debt consolidation loans as one of your credit solutions, is really not a solution, but a game of "kick the can." The further you move the day of reckoning forward, the more comfortable you feel. The Federal Reserve and politics have been playing a game of "kick the can' with interest rates and buying debt for the past two years. It won't solve your problem, but it might make it feel better for a day or two and postpone the inevitable.

Debt settlement is another one of our credit solutions. its an agreement between you and your credit to accept less than the value of the debt for immediate payment. This type of action CAN effect your credit score, so be certain you include some type of credit reporting agreement with the lender before you agree to this kind of settlement.

Bankruptcy is the final of our credit solutions. Wash away the debt. There are costs involved, not the least of which is the seven to ten year bump on your credit report. Most people who write information on credit options haven't been bankrupt and don't understand the personal trauma that is sometimes involved in this decision. This is the "no way out" option that allows you a fresh start and a way to start rebuilding your life.

These credit solutions are not a substitute for all the rules our parents taught us. Spend only what you have. Don't take on unreasonable expenses. Save for a rainy day. All those platitudes are nice, but not when you feel the world is caving in around you. Certainly the US economy, and likely the world economy runs on easy credit. The tide has swung to a tightening of money, while the Federal Reserve is holding interest rates to near zero for banks. Banks will begin lending again--once they've made up the profits they lost by loaning to those who couldn't quality in the past.