During these tough economic times, there are many people with suffering credit scores, and they are working hard to change that. Repairing damaged credit can be a pain, but we can help you make it as easy as possible.

The first step should be to obtain a credit report and a credit score. Lots of sites online will let you do this and many will even do it for free the first time. Identifying the current state of your credit should be your first step. It will help you to figure out what steps must be taken to repair it.

Contact your creditors to determine if you can pay late or in installments. You'll be able to save money if you pay off bills that will charge you interest penalties first. You can focus on the creditors that will make additional charges to your account, and arrange payment plans with the others.

After reviewing your credit report, record the items that are negative. Having this list will help you see exactly what you need to work on. It is quite possible that your credit report contains inaccurate information, so make yourself aware of what is on there. You can then contact the companies that reported you, and get those mistakes straightened out.

You still have rights, even in the field of debt, so ensure that you are aware of what these are. Remember, you can not go to prison for unpaid debt. While different states have different laws, the general rule is that you cannot be harassed over the phone by collectors. Know your rights, and you will not be an easy target for collection agencies.

Stay on top of your current credit accounts, and make sure balances do not exceed 30 percent of your available limit. This will help your budget, as the monthly payments will be less. Balances that go above the 30 percent limit become more difficult to manage and start to eat into your disposable income. Always watch your balances, so you can limit your debt ratio.

If your debts were sent to a collection agency, speak with them to work something out. A simple way to approach it is to suggest a payment plan, as collection agencies are normally happy that you are making any move at all. Avoiding collection agencies will only make your problems worse. Your debts will not magically vanish. Explain the reasons for your difficulties and it is possible that the collection agencies will offer you help, which will allow you to pay your debt off easier. If you have debts that have been forwarded to collections, contact them and work out a payment plan. Collection agencies are happy establish payment plans for their clients that are willing to work on settling their debts. Avoiding the collection agencies is the worst possible thing you can do, since your debts will still be hanging out there. There are collection companies that will reduce your debt in order for you to have easier monthly payments.

The tips presented above should help you to stay on top of your finances. By following these actions, you can immediately improve your credit rating.