Question:   How does reading my credit report help with debt problems?

Answer:      Getting help with your debt is much easier than you may think. If you find yourself mired in debt, don’t panic, there are things you can do and resources available.

Getting yourself back in control of your finances will take some focused effort, but it can most definitely be done. Information is readily available to anyone wanting to educate themselves about money and finance.

The Internet is a terrific resource. Not only are there some great websites that offer tremendous value. Best of all, the vast majority of the information is completely free!

One of first things you should do in order to get a clear picture of your finances is to obtain a copy of your current credit report. There are three major credit reporting agencies: Experian, Equifax, and Trans Union

You have the option of obtaining just one report from one company, or you can request a copy from all three companies. I recommend getting all three report just to ensure you don’t miss any key information.

There is no need to pay for your credit report. The Fair Credit Reporting Act requires each of these companies to provide you with a free copy of your report every 12 months.

If you’d like to receive your credit report more frequently, you can stagger your requests and get a copy from a different company every four months. This way you can always have a solid idea of how your credit report looks.

How will a credit report help with debt problems? Once you learn how to read the credit report (each agency provides detailed instructions), you will become more educated on your financial status with each of your creditors.

Always check that your personal information is correct and that any debts attributed to you are truly yours. Finding any inaccuracies will certainly help with debt problems as you can request to have any false information investigated and removed.

Credit reports will help you determine the scope of the problem, but it will be up to you to take the steps necessary to pay down, and eventually eliminate, your debt.

Go down your account list, one creditor at a time, and inform them of your financial situation. Tell them the truth - that you’ve overextended yourself and you are at risk of defaulting on your payments.

Ask if they are willing to alter the payment terms on the account. It can’t hurt to ask.

A long list of creditors can seem overwhelming at first, but just take it slow and start seeking out any and all options. Remember, you are your best resource. You are your best solution to the problem.

It’s true, taking personal ownership of your debt issues is the best way for you to get help with debt problems. The best place to go when drowning in debt is, well… to WORK.

Get started today.

» Does it make sense to use gift credit cards so I earn award points, rebates or mileage?
Various gift credit cards, whether for cash rebates, mileage or points reward programs do not make using credit cards a good thing. The money, mileage or points earned will never be enough to justify the risk that in inherent to playing the credit card game.

» What’s the history of credit cards, and how do I distinguish between good debt and bad debt?
Debt is dumb, it should be avoided at all costs. Just look at the history of credit cards. Less than 50 years ago, it would have been shameful to buy on credit.

» After accepting first time credit cards, is it a good idea to transfer balances from a higher rate card to a lower rate card?
Do not apply for new, first time credit cards only because they offer a lower rate. This defeats the purpose of getting out of debt.

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