If you've ever had any money problems, then you're probably aware that they can affect your credit report. And you've probably seen the ads claiming to fix your credit problems quickly & easily.

If so, I've got two words of advice - BE CAREFUL!

For every legitimate company out there, there are several that are just out to get your money. And don't really care if they fix your credit properly or not.

Bad credit can be costly, embarrassing, and a pain in the neck.

Costly: With bad credit, you'll have a lower credit score, and therefore pay higher interest rates on credit cards and loans - if you can get them.

Embarrassing: If you've ever waited in line in a store and applied for credit to get a special deal, and been declined, you know how embarrassing that can be.

Pain in the neck: Credit problems don't go away on their, at least not quickly. It can take 7 years or more for the bad stuff to come off your credit report.

So if you've got credit problems, what can you do? And if you need help, how do keep from getting ripped off by a dishonest credit repair company?

Here are 7 tips to protect yourself from credit repair scams:

1) Know what credit repair IS & what it is NOT.
What credit repair IS:
- Removing inaccuracies from your credit report
- Removing damaging items from your credit report (yes, even accurate information can be removed, if you do it correctly, despite what many people will tell you)
- A way to fix past credit problems - not a way to keep you from making the same mistakes in the future! But hopefully you'll learn a few lessons that will help you stay on the right path
- A process that removes items one by one, not in one big step

What credit repair is NOT:
- Tricks or bribes or secret info available only to "special" people
- Anything illegal or immoral (don't let anyone tell you it is immoral to fix your credit report, it is not
- hey, the creditors and banks are far worse in the way they gouge their customers)
- Only done by lawyers or professionals (anyone can do it, trust me)
- Something that requires detailed knowledge of credit laws or financing

2) Consider doing it yourself.
It really is not that hard. But you need to know how to do it right or you could make matters worse. And be prepared for rejection, and sending letters over and over to the same places. That's where a good, inexpensive credit repair manual can help you out. You'll learn the little "tips and tricks" it takes to get rid of bad credit. Sure, you could learn on your own. But for under $50 you can save yourself a lot of time and trouble.

3) Keep in mind it doesn't happen overnight.
Even in the best cases, credit repair takes time. I did my own and it took me about 18 months to get my credit back to normal (of course, keep in mind it took a lot longer to damage it in the first place). There is no "magic potion" for fixing credit. It takes time. And effort. And knowledge. But it can be done, with a little bit of all of those qualities. The faster someone promises to fix your credit, the more you should be skeptical.

4) Check the company's references and BBB report.
If you're hiring a company to help you, ask for references. Go online and check out their Better Business Bureau (BBB) report, and see how many complaints have been filed. Or worse, if they have no BBB report. You can never be too careful. The people you will talk with will be trained salespeople, who's only job is to get you to sign up and pay. So take your time, and "do your homework" before you sign up.

5) Get everything in writing and read it carefully.
This is true when hiring anyone. But especially with any kind of debt reduction or credit repair. Make sure to get the agreement BEFORE you agree to sign up and READ it carefully. Even if it's written in fancy legal language that is hard to read. This is your contact, which will protect you if anything goes wrong.

6) Don't let anyone tell you that you need a "new" credit file.
This can only lead to trouble. No matter how bad your credit, DON'T fall for this scam. They'll either try to get you a second social security number (which is illegal), steal your current social security number (which of course is also illegal) or do something else that will cause you a lifetime of headaches!

7) Read the Credit Repair Organizations Act
To learn what these repair companies can and can't do. Just so you know, it's also written in fancy legal language so it may be hard to understand. But being an educated consumer is always a good thing

Of course there are many legitimate credit repair companies and manuals out there that can be a big help to someone in need of credit repair help. The key is to do your homework so you find one of the good ones and avoid the scams!

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Having a clear goal means everything when trying to get out of debt. Just like with losing weight or quitting smoking, if you're not motivated and aren't ready to do whatever it takes, you won't stick with your plan through the hard times. That's why so many people struggle with debt, and weight loss, and smoking.

The other day I came across an interesting video on motivation. It's not brand new, but the concepts are so amazing that it's worth watching more than once.

It's mostly about motivation in the workplace. But the ideas work for just about anything in life. The more motivation you have - and the more of the right kind of rewards you'll get - the more likely you are to successfully reach your goals

Here's the video. While you are watching it, think of how you can use the "candle problem" to help you solve your financial problems.

Motivation video

Pretty interesting, isn't it?

So here are some questions to ask yourself:

- What is your goal? And be specific. Is it getting out of debt? Staying out of debt? Saving up a certain amount of money? Retiring with a certain amount of money? Saving up for a big purchase?

- What obstacles are holding you back? How can you use the "candle problem" to get what you want financially?

- How can you overcome these obstacles? What types of rewards can you give yourself, so you can reach your goal?

For some people, goals are hard to define. If that sounds like you, then get a piece of paper and write down your goals right now! Be very specific. Don't just say "I want to get out of debt". Try writing something like "I want to pay off all 6 or my credit cards or all $15,300 of debt I owe".

For others, goals are way too strong a commitment. If that sounds like you, that's okay. Start small, like paying off one credit card. Or reducing your debt by $1,000 in the next six months. Then make a commitment to yourself to achieve it. Then on to the next goal.

For others, they know their goal and are committed, but don't have the right motivation to keep working towards their goal. If that sounds like you, then break down your goals into smaller steps AND write down specific rewards for each step you complete.

You can get yourself out of debt. If you believe strongly enough. And go about it the right way. All it takes is the right motivation, and a good plan for getting out of debt.

Wow, that's a tough question. One I struggled with a few years ago. And one I see discussed occasionally on various blogs, and asked on various message boards, especially Yahoo Answers.

For those who don't know, debt settlement is a process where you negotiate with your creditors to pay off your credit card debts for less than you owe.

But should we even think of money in moral terms? If so, is borrowing money moral? Lending it at high interest rates? Giving credit to people who probably shouldn't have it?

There are lots of ways to think about this. So let me lay out both sides of the debate:

Debt settlement is morally WRONG:

• You borrowed the money, you should pay it back. All of it. As you agreed to.
  (OK, this is a good argument).

• Many debt settlement companies are scams, or will rip you off.
  (This is true. But there are plenty of good, honest companies out there. And even if it is true, that doesn't mean the process is morally wrong, just that some of the debt settlement programs that offer services are dishonest. So this is not really a good argument.)

  Many people are looking for an easy way out.
  (True. In all areas of life, not just with credit card debt. But not everyone who considers debt settlement is looking for an easy way out. People lose jobs, get hurt without health insurance, get overwhelmed and simply need help. Debt settlement is one of those options. Again, just because this is true of some people doesn't make the settlement process immoral).

Debt settlement is morally RIGHT:

So you need help getting out of debt? No big deal, lots of people need help these days. Just don't be like the ones who sign up for a debt relief program with no idea what they are signing up for - and then complain about getting ripped off.

Sadly, many people who complain loudly about debt relief scams got ripped off for one of two reasons:

• They didn't check out the company first.

• Didn't really get ripped off, but had no idea what they were signing up for.

And these people give the good, honest companies a bad reputation. So do yourself a favor, and ask yourself these 6 questions BEFORE you sign on the dotted line (or before you give away personal information without signing anything).

1 - What type of service do you offer?
There are many terms used by professional companies - Debt relief. Debt management. Debt settlement. Debt consolidation. Credit counseling. So it is critical that you get a detailed explanation of the service you will be getting. It really doesn't matter what it is called. But it does matter what the company will do for you. And if you don't know what they'll do, how can you determine if it will help you? DO NOT sign up with any company that doesn't give you specifics. A company that just promises to "help you get out of debt" is a disaster waiting to happen, and you should run away from them.

2 - How exactly will you help me?
Once you know what service the debt relief company will perform for you, then you need to know how they will do it for YOU. Sure, not every situation is exactly the same. But you should know how they will help you get out of debt. Will they consolidate your payments? Lower your interest? Settle your debts for less? And when will each step happen? What else do you need to do? Don't be afraid to ask lots of questions. If you don't understand the process BEFORE you begin, you'll be setting yourself up to be miserable when the collectors call, or your credit gets ruined, and you don't know why.

3 - What does it cost?
Nothing in life is free. Including "non-profit" debt relief or credit counseling or whatever they call it. Non-profit simply refers to the way their business is set up, and does not mean you don't have to pay, or that the fees will be affordable to you, or that you won't get ripped off. So make sure you know the exact costs up front. If you don't get actual dollar amounts, walk away and contact another company.

4 - What is your BBB rating?
The Better Business Bureau will give an idea of how the company has performed for other customers. It is not perfect, but you can see if a company has a few complaints against them, or a few hundred. And you'll get to see if they respond to the complaints, or just ignore them. Don't focus on the "score" or "grade" since some local BBB's give out "F" grades to all companies in the debt industry, even if they don't deserve it. So look at the entire review, and stay away from any company with more than a 10-20 complaints.

5 - What are the downsides to using your service?
Yes, every debt relief program has some downside. Either the cost. Or the impact on your credit. Or that it takes time to get results. So be prepared for something negative. For most people that's still OK, since the end results of being out of debt will outweigh the negatives. But you should know the truth. If the company you choose won't be honest and tell you the truth, and insists there is no downside, find another one.

6-Can I see everything in writing before I decide? In most cases you should be asked to sign paperwork before you get started. If not, don't send any money or account numbers or anything personal without a written agreement. And when you do get the paperwork, read it carefully. If you don't understand what it means, ask the company to explain, or ask a friend or relative with some legal experience to read it over and see if they find anything wrong. Once you sign it and send it in, you lose the ability to easily back out of a bad agreement.

Don't assume that just because a company creates a fancy, expensive looking ad, or a professional looking website, that they're a good company to work with. Do your research up front. And if something doesn't seem right it probably is not. Or if it sounds too good to be true - that's because it probably is!

Wouldn't it be nice if getting out of debt was as easy as A-B-C? Well, the honest truth is that it's not that easy. It takes work. And time. And stress. And planning. And patience.

For most people it takes years to get deep enough into debt that you need help. And for most people it takes years to get back out.

If you can't deal with that, then you're not being honest.

But if you do come up with a plan AND you make a commitment, you can get yourself out of debt. It doesn't matter which path you take. Credit counseling. Debt settlement. Banktruptcy. Debt consolidation. Borrowing from relatives. All of them work, in the right situation. And none of them work if you don't really go full steam ahead.

Here are the real ABC's of getting out of debt:

A
Acknowledge that there's a problem. Sounds obvious. But many people don't realize that the solution to their money problems is WITHIN their own heart and mind. Sure, you can get professional help. But YOU need to understand that YOUR decisions got you into debt. And YOUR decisions can get you out. But first you need to take ownership of yourself and your money decisions. It may be that you spend too much. Or make too little. Or have a true financial hardship. In any case, take back control, and you'll be one step closer to a solution.

B
Begin immediately to fix the problem. Don't wait for your next paycheck. Or your raise or bonus at work. Or the next lottery drawing. All of those may happeen. Or they may not. But you CAN make commitment to getting out of debt. And write down your goal on a piece of paper. Be specific. Write out all the steps you can take to fix your finances. Like cutting out "extras". Getting an extra job, or a job that pays more. Sell stuff you don't use. Cancel the newspaper. Downgrade your cell phone and cable plans. Stop eating out so frequently. You get the idea...

C
Consider your options carefully. There are several different programs to help you get out of debt. Credit counseling. Debt settlement. Banktruptcy. Debt consolidation. Borrowing from relatives. Look into all of them. Contact 2-3 companies that offer type of each program. Compare details, fees, results from past customers. Ask lots of questions. Then make a decision. And stick with it.

D
Don't get ripped off. If you do decide to get help, this is an important step. Just just call the company you see on late-night TV. Sometimes these ads sound "too good to be true" for a reason. So, ask lots of questions. Get everything in writing. Ask for references. Check with the Better Business Bureau. Go to Google.com and type in the name of the company and see what other people have to say. In short, shop around and do some research. A little time and effort here could save you lots of headaches later on.

E
Enjoy life while you're fixing your money problems. Realize that getting out of debt takes time. But don't wait until the end to have fun. Do little things to reward yourself. Go to a matinee at the movie theater (they're usually cheaper). Clip coupons. Find specials at local restaurants. Head to the beach or lake or take a walk in the woods, these don't cost much. But make sure you stick to your plan so you don't stray too far from your goal.

So that's it, the ABC's (actually the ABCDE's) for getting out of credit card debt faster. Follow these 5 steps and you'll be on the right path to paying off your bills.

It ain't easy. But it works, if YOU make it work!

Have you ever received one of those emails from your friends that sound too good to be true? Like the one where you can help lower gas prices if you stop buying from one of the big name oil companies? Or if you add your name to the bottom of the list and send to 10 of your friends that Microsoft will donate money to charity and end world hunger?

They sound good. But the reality is that most of them are nothing more than a myth (well, they're also a big pain in the neck, too!).

The "cyber world" is full of myths. Some are fun to believe in. Some can be dangerous to your (or your computer). But the lesson here is that you should NOT believe everything your read online.

A few years ago I was struggling with debt. I tried everything to get out of it. But nothing worked. So after months of research, I decided to use the controversial method known as "debt settlement". You can argue whether you like it or not. And you can easily get ripped off if you're not careful. But for me, it was the right solution at the right time.

But everything I read said that debt settlement will ruin your credit until the end of time (ok, it actually said that it would ruin my credit for 7-10 years, but for some people that can seem like a lifetime).

Being the skeptic that I am, I looked into credit repair. I went to the library and local bookstores. Read lots of horror stories online about people who signed up for various types of debt relief and ended up ruining their credit (and there were lots of them). And read lots of information on the Internet from all the "experts" who said you absolutely could NOT get this stuff removed from your credit report, unless you waited 7-10 years.

And despite the fact that there was apparently no chance it would work, I decided to give it a shot. On my own. Using a simple book I found in a bookstore.

And much to my surprise, within about 18 months, my credit was back to normal!

I didn't do anything illegal.

I didn't do anything unethical.

And I'm certainly no legal expert with special skills.

So all this "crap" I read about ruining my finances by using debt settlement was actually a myth! Well, it is true - if you sit back and let it ruin you. But there are ways to fix your credit without doing anything even close to "shady" or evil or devious.

You may think, "well those are the rules and you just have to play by the rules and wait 7-10 years for your credit to fix itself". And if you do, I commend you.

But at the same time, when I asked the credit card companies for help during my darkest days, they refused.

And trust me, I'm one who always plays by the rules. I always stop at stop signs. I always put on my turn signal. I'm neat and organized to a fault. But I just happened to feel that those credit rules were fair. And to get clean up my credit, it only took one simple action - all I did was ask for the bad credit to be removed. I didn't lie. I didn't cheat. I just asked (the key is HOW you ask).

Here are the 5 truths (and myths) I learned the hard way about fixing credit problems:

1) All bad credit MUST remain on your credit report for 7-10 years. If you sit back and do nothing that is correct. But it doesn't have to stay there that long. You just need to ask the right way to get them removed.

2) And you can't get bad credit removed unless the information is wrong. If anything on your credit report is wrong, you should have it corrected. But even if it is not wrong, you can still ask to have it removed. And if the credit bureaus can't verify it (which I learned that they often cannot) they have to remove it. Nothing unethical at all.

3) Debt relief programs will ruin your credit. If you've got so much debt you can't buy groceries without using your credit cards, then you probably need to focus on getting out of debt, and worry about your credit later on. And if being out of debt improves your life, it will be worth it.

4) You need to hire a lawyer or repair company. These companies might work. But even it they do, they're expensive. And they won't do anything you can't do on your own. If you do decide to use a professional company, make sure to check them out very carefully.

5) Credit repair is unethical - after all, if you messed up, you deserve to pay. True, to some degree. But is charging 20-30% interest, or more, ethical? And is giving another credit card to someone struggling to pay the ones they already have ethical? No. So asking the credit bureaus to remove bad credit isn't unethical either.

So if you've had credit problems in the past, you can do something about it. It takes some effort. There are no "secrets" involved. Just a few well-written letters, and a little persistence. And you can take charge of your finances too!