(ThyBlackMan.com) Are you stuck in a bad debt situation? If yes, don’t feel hopeless. As long as you know the right steps toward credit repair, you can get yourself out of bad debt. This article shows you what to do to get out of debt starting today.
Know your debts. You need to know the exact status of your debts. Begin by ordering a copy of your credit report from the three major credit 
bureaus. If you haven’t received your free report for this year, you can request for it from http://Annualcreditreport.com.
Once you have credit report, examine it closely. See to it that all information and charges in all your accounts are correct. In case of errors, send a dispute letter to the credit bureau that issued your report. Upon receipt of your letter, the bureau will conduct a 30-day investigation and if your dispute is valid, you will also receive updated copy of your report for free.
Plan your next action. Once you know the details of your debts, you can start creating your debt repayment plan. Sometimes, taking out a debt consolidation loan is a viable option but this depends on the situation.
Watch out for debt relief scams. A person who is experiencing a problem with bad credit might be more prone to scams. Don’t be afraid to seek the right kind of help. Check out the NFCC (National Foundation for Credit Counselling) to find a legitimate credit counselling agency nearest your location.
Avoid debt relief agencies that promise to bring instance debt relief. There are also fraudulent credit counselling agencies that may take advantage of the situation by offering a debt consolidation loan filled with unfair rates and fees. Watch out for such agencies who are after one thing – making money.
Avoid new debts. Don’t give yourself additional pain and burden by incurring new debts. Credit cardholders need to be particularly cautious about how they use their credit. Make it your resolution not to charge unplanned purchases on your credit card and to pay your charges on time.
Save for tomorrow. Find ways to minimize your expenses and use the money you save to contribute to your debt repayment. As you work towards debt recovery, don’t forget to set aside funds for emergency as well.
Head Writer; Thomas Jones, Jr.
