If you are like millions of other people all around the world, you know how tough it can be to deal with credit card debt issues. This is simply not something that anyone wants to have to think about or deal with. However, these are problems that have to be taken care of. It is best that you know a little bit about what options are available to you as you go forward.

Credit card debt problems are primarily problems of a lack of available funds to pay. It is not that you are trying to skip out on the debt that you owe, it is simply that you do not have the money to pay it. Life is very expensive, and it can be difficult for even those earning plenty of money to pay their debts on time. Luckily for all of us, there are ways to deal with the issue. The first thing to do is use something known as debt consolidation.

Debt consolidation is the process of taking out a loan in order to pay off the debts you currently have. This may seem like an odd way of dealing with things, but it actually works. If the loan you are taking out has a lower interest rate than the average of the debts you are currently paying on, then you are going to be saving yourself some money. It is also nice to only have to send money to one source each month. That lowers the amount of work for you and the risk of missing a payment because you simply forgot.

Assuming that debt consolidation doesn't work or is not an option for you, you can always try to use debt negotiation to help solve the problem. All that you are doing here is bargaining with the people you owe money to give you more time to pay or a lower sum. Many times these companies will actually agree so long as they are able to get some money out of you. It is surprising just how much a little talking can get things solved in this industry. Try it for yourself today.

Why are people so focused on credit scores these days?

Every time I go online, I see another article with tips or strategies or warnings about knowing your credit score.

For many people, it's a lot like staring at your gas gauge when driving your car. If you've got plenty of gas, you don't need to keep looking at how much gas you have. Just focus on the road, and enjoy the ride. If you're running low, you know you need to stop soon for gas, but no big deal. But, if you're about to run out of gas, forget about the gas gauge and find the nearest gas station ASAP!

The same is true for credit scores - if you've got lots of money and you don't use your credit cards that often, then you really don't have much reason to look at your credit score. Instead, keep doing what you are doing! You must have a good sense about managing your money. And if you use your credit cards but pay them off every month, just make sure they all get paid on time and you don't miss any payments by accident.

But if you're having trouble paying your bills, and you're losing sleep over debt, then "good credit" is a false hope and you need to get your butt in gear and find a way to pay off your debt! Because you can't really live with too much debt and good credit at the same time, regardless of your credit score. So spend your time on finding ways to fix your money problems (make more, spend less - you get the idea) and NOT worrying about your credit score.

It drives me nuts when people say "I'm drowning in debt but I don't want to get help because it might ruin my perfect credit." Are you serious? You have too much debt, but won't get help because you want to save your credit score? Sorry, but you've got this all backwards.

OK, here are 3 good reasons why you should totally ignore your credit score when you're struggling with debt:

1) Credit scores are used for borrowing money. And if you've got a bunch of debt then you probably shouldn't be borrowing any money in the first place (and that includes credit cards, retail financing deals like 12 months no interest, store credit cards - not just loans). You should be working on paying down your debt (because too much debt lowers your credit score) and paying your bills on time (because paying late lowers your credit score).

2) Holding onto "good credit" is meaningless if you're trying to pay off debt. Even if you think your credit is great, and you've always paid on time, if you owe too much then your credit is not as good as you think it is! So given the choice between getting out of debt or keeping your "good credit" you absolutely should focus on getting out of debt. Unless you're in big business like Donald Trump, there is no such think as good credit card debt. Especially if your interest rates are above 15%! Hey, you can worry about your credit later...

3) Despite what "the experts" say you CAN fix your credit. I know. Because I did it. It does take some time, and some effort. But it can be done. And I'm SOOO glad I didn't wait any longer by holding onto the idea that I didn't want to hurt my credit. Because in the end, I saved much more money by getting out debt. If you're one of those people who can't pay your bills but won't get help because of the credit score impact, do yourself a favor and get rid of your debt first. Fixing your credit is much easier. And nobody loses sleep over a credit score!

Let me put it to you in real simple terms:

Debt sucks!

- First of all, it sucks to lose sleep over debt.

- And, the more debt you have the faster it sucks money out of your bank account or wallet, because of all the interest and fees.

So if you're dealing with too much credit card debt, then STOP watching all the ads for free credit reports, and STOP reading all the articles telling you how important it is to know your credit score.

And focus all your energy towards paying down your debt.

Do you agree? Or do you think I'm dead wrong? Let me know your thoughts below.

When your credit score drops below a certain level you will find that more and more of your usual lending streams will be closed off to you, credit card limits will be reduced and credit will become more and more difficult to obtain. The only way to turn things around at this point is to take the necessary steps to repair your credit rating, but is it ever a wise move to pay a credit repair company to do this for you?

Credit repair is something that you can undertake by yourself but it can be a painstaking process, particularly if you have a number of creditors or if your debts have been passed onto various debt collection agencies.

There are a lot of companies around that will take on all of the work involved in repairing your credit score and, if you choose a reputable company to do this for you, this can save a lot of time and give you the piece of mind that a thorough job is being done. The major downside is that this will cost somewhere between $500 and $1500, a lot of money to pay out when you are already in a parlous financial position.

Moreover, although credit repair companies will do a lot of the leg work, it is still down to you to do the ground work, i.e. compiling a list of your debts and creditors, and this can be the most time consuming part of the process, particularly if your debts have been passed on to third parties.

It’s also worth bearing in mind that, whilst there are a lot of reputable companies offering a credit repair service, there are those out there that will happily take your money and then take their time, which is of no use to you as you’ll want to see an improvement in your credit score as soon as possible.

This leads to another problem with paid for credit repair services, they very rarely guarantee to repair your credit score and instead will caveat any agreements so they cannot be held responsible should they fail to improve your credit rating.

So if you haven’t the means to, or simply don’t want to, pay a credit repair service to improve your credit score then what steps should you take to try and repair your own credit rating?

The first thing to consider is how you actually ended up with a poor credit rating and examine the factors that can have a negative impact ons your credit score. Your credit score can be adversely affected by any of the following:

• Falling behind on mortgage, loan or finance repayments or making late payments to credit card and utility companies.
• Being close to the credit limit allowed on your credit cards or overdraft.
• Having no previous credit history or a short credit history.
• Applying for a multiple credit cards, loans or overdrafts in a short space of time.
• Not having enough different credit lines, for example, installment loans (fixed payments such as car finance) and revolving loans (unsecured borrowing such as credit cards).
• Being bankrupt.

Once you know where you were going wrong, the next step is to prepare an income and expenditure sheet to cover all of your financial ins and outs. This should include everything from mortgage and rent payments, to utility bills, cell phone bills and the current payment requirements on any loans or credit cards you have. If done properly, this will highlight just how much disposable income you have at the end of each month and give you an idea of whether or not you can meet the demands of your creditors.

If you find that you cannot at least meet the minimum demands of your creditors then it is vital that you contact them and discuss the options regarding a compromise on your repayments. It may be that you come to a temporary agreement whereby you pay a nominal fee each month to give yourself a bit of breathing space to sort out the best solution to paying off the debts. Whilst an agreement like this doesn’t help to actually pay off any of the debt, it will ensure that you do not fall behind on payments and damage your credit score even further.

One way forward may be to take out a debt consolidation loan as, although it may seem like madness to take on more credit, it is far easier to manage one monthly payment to one creditor rather than servicing the debts of several other creditors. Furthermore, in consolidating debts, particularly credit card debts, in one loan, then you may well save money on interest payments.

Another idea could be to transfer any balances you may have on to interest free balance transfer credit cards. Again, whilst taking on another credit card may not seem like the best idea, this will massively cut down your outgoings as you’re not paying any interest and will also ensure that you are paying off your actual debt and not simply lining the lender’s pockets through interest payments.

When you have a handle on your financial situation it is time to start rebuilding your credit rating and there are numerous ways in which you can do this. One of the best ways to do this is to explore any credit avenues that you may have previously ignored such as cell phone contracts, prepaid credit cards or car finance.

It may also be worthwhile to use an existing credit card to pay for everyday expenses such as petrol and grocery shopping as this is a straightforward way to keep a regularly updated credit file and improve your credit score month on month. But, to get any benefit from this, it is vital that you pay off the balance of your card in full at the end of each month so as not to incur interest fees and fall further into debt.

Overall, it is probably best to try and undertake credit repair yourself as, if you are in a position whereby you have a bad credit score then it’s unlikely that you will be in a position to pay anywhere up to $1500 to repair your credit rating. However, if you simply cannot get yourself in a position to go it alone and require an external credit repair service, it is vital that you choose a reputable company that have your interest, and not just your money, in mind.

This article was written by Les Roberts, credit journalist at Moneysupermarket.com.

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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37 Days To Clean Credit

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!

Have you ever wondered what makes your credit score go up? What makes it go down? And what really has no effect at all?

Then check out this free booklet from MyFico.com, Understanding Your FICO Score. When people say "credit score" it can really mean one of several different types of FICO scores, all slightly different. So it's a good idea to know how it is calculated. And how to make it as high as possible (with credit scores, high is good).

Unfortunately, many people think they can't do anything to change their credit score. But that's not true. Because your credit score is dependent on many factors. Such as:

• payment history (late payments lower your score)

• how much you owe (the more you owe, the lower your score - most people don't realize this)

• how long you've been using credit (so keep your old accounts)

• new accounts (too many new accounts are a "red flag" and lower your score)

• types of credit (shouldn't be all credit cards)

So even if you've had problems paying on time, you can still raise your credit score.

• The #1 goal should be to pay your bills on time - come up with a system so you make payments on time. There's nothing worse than getting penalized because you forgot a payment. If you do, call your lender right away, and ask for them to help you get current, and remove any late fees.

• Then, stop applying for more credit, especially if you will be getting a loan for a major purchase. Shopping around is OK. But not if you do it all the time. And not if you keep getting more and more credit.

• And try to pay down your existing debt as much as possible. You'll pay for a high amount of debt in several ways - higher interest rates, lower credit score, more likely to miss payments. Pick one account and try to pay it off as quickly possible. Then move on to the next account. And keep going. This is called debt snowball.

• Don't close old accounts, either. Having old credit is good. And having unused credit is good too. So unless there's a clear reason, keep those old accounts open.

And then there's credit repair. Which gets a bad rap, but can work if done right.

First, you need to get a copy of your credit report from www.AnnualCreditReport.com. Then make sure everything on there is accurate. If not, dispute it.

And there are ways to get even legitimate credit problems removed from your credit report (and you don't need to do anything illegal, or even "shady". You just need to know how to ask). There are lots of credit repair companies out there that will charge you a lot of money to fix your credit problems. But most people can do it themselves. It's not hard. A simple credit repair manual can help you learn how to do it yourself.

To get your free copy of Understanding Your FICO Score click here. Have any other good credit repair tips or resources you would like to share?