Because of the economic crisis, many people have bad credit. Regardless of how dire your current credit situation may be, these tips can set you on the road to recovery.

The first step should be looking into your credit report and finding out your credit score. There are lots of places to find a copy of your credit report, some of them for free. If you want to fix your credit, you need to know exactly what is wrong with it.

Find out which creditors are willing to negotiate a payment plan or let you pay a couple weeks late. Once you know which bills you can't put off, you'll want to pay those first. You need to know how much you are being charged in penalties and interest. It's best to pay off the debts with the highest interest first to avoid accruing even more debt.

Locate all relevant materials pertaining to your credit report. It is possible that you have had your identity compromised or that your credit report contains false information. You may detect discrepancies on your credit report; quickly contact the involved parties and have the problems addressed as soon as possible.

Research your rights and know the laws surrounding collection agencies. Things you should be aware of include your right to not be harassed over the phone, and the fact that you cannot be sent to jail for not paying your bills. The laws differ slightly between states, but most states have laws against verbal harassment. Know your rights as a debtor, and exercise them when appropriate.

Always keep your credit card balances under 30 percent of the available credit. When your balances are low then your monthly payments will remain low also. If your balance is higher than 30 percent of your total credit limit, you may have an issue keeping up with your payments.

If you are contacted by a debt collector, inquire about ways to set up a payment plan or consolidate credit debt. For the most part, creditors are more than willing to assist you in developing a payment plan that suits your finances. Avoiding debt collectors just leads to more debt and aggravated collectors. It's important to let them know that you're willing to pay but are having trouble doing so. Sometimes they will lower your bill and even cut the amount you owe in half. Cooperate with them, and suggest a payment plan that you can afford. If you work out a plan with them, it may stop them from adding further charges to your bill.

These tips will ensure you get your credit issues under control. Start applying some of the advice from these tips and you can improve your credit score and reduce stress caused by financial worries.