Credit repair and eliminating your credit card debt does not mean that you have to hire an expensive credit repair service. In fact, if you want to fix your credit you can do it yourself for free. I cannot promise that it will be easy but despite the glib promises made by professional services those are not easy either.

Do not sign a contract committing yourself to an expensive credit repair service. Do not buy any books or software to help you fix your credit. Instead focus on three simple and free steps to rid yourself of bad credit.

First, go the root of the matter. Run your credit reports, every consumer gets a free credit report from the three major reporting agencies every year. Plus if you have had a credit application denied recently you can ask for a report at that time. You do not need to pay for your credit report or join a program to get access to it. This will give you a good picture of your credit situation but you should also collect the recent statements from each of your creditors. Not only will these give you valuable contact information for the next two steps but it usually offers the most up-to-date information regarding your payments, balance, and interest rates.

Once you have summarized your situation it is time to move on to step two which is simple — empty your wallet of credit cards. Cut them up and throw them out, but then you need to take another important step. Close those accounts and do not sign up for any more cards until your credit is once more good. If you continue to add to your debt then you will not solve your problems.

The final step to repair your bad credit and eliminate your credit card debt will take the longest and involve the most hard work and stress. Now you will need to make a plan of action. The first step is to stop making any payments on your credit cards. Now, set aside the money you would use to make those payments for a few months. When the credit card companies start calling about your delinquent payments be polite but be clear that you cannot pay the bill at this time although you are working on a plan to clear your debts. Tell them not to call again until next month. Minimum payments will never clear your debt and it is best to consolidate the money until it matches a sum that will be able to do you the most good. Once you have enough money to pay about one-third of one of your bills (assuming a few months have passed) then call the company and offer your one-third payment. Some companies might jump at that settlement and others may negotiate for a while. It is very likely that through standing firm, consolidating your payments, and waiting them out that most of your creditors will settle for half or less (on average).

You can do your own credit repair and eliminate your credit card debt without outside help with these three simple steps. Simply summarize your situation, empty your wallet, and work the phones. You can do it.

By Deanna Mascle

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