Step 1: The first things you need to do are a get a grasp on your level of debt and face it head on. You need to order and print them out. They can be ordered on the Equifax and other credit reporting agency web sites and then you can print them out. The reason printing them is the best way to handle it, is because you can then spread everything out in front of you and get a good look at the items on there. Also, pull all your recent statements and bills and put them on the table or work surface with your credit reports. If you are more about computers, then use Excel to create the following list and them formulate a cell for a grand total at the bottom or top of the list. The list should include the creditor, creditor contact information, due date, monthly payment, interest rate and current balance. Cross check the information you pull from your bill pile with that from your credit reports to make sure there are no doubles and that the information is the most up to date as possible.

Step 2: Next you need to highlight or star the accounts with the highest balances (top five) and the highest interest rates. These are your most detrimental accounts. These are the accounts you want to focus your extra money and attention on. Keep in mind though that you still need to pay the minimums on your other accounts while you are concentrating on the larger accounts one at a time. This will keep you from defaulting further and getting more into trouble.

Step 3: You should always attempt to negotiate and pay off companies if you have the resources to do so. If you have access to a lump sum or have close to the balance of any of the accounts, then you need to get on the phone and negotiate down the debt with them and offer them a settlement. This can get rid of a debt quickly while still saving you money. If some of your creditors are unwilling to budge on the balance than ask for a lower interest rate.

These are all ways to help you find the best way to pay off your debt and when used together can have the best success in forming a debt pay off plan that you can stick with and will find success with. Paying off debt is a big task and it will take tenacity and strive to see it through to the end, but when you get there the push and drive will be replaced by pride and relief and hopefully a renewed sense of respect for credit and the money you make.

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Tip #1: Only borrow exactly what you need. This is important because often times people feel like they are getting free money and they tend of borrow too much or overspend on credit and other store account cards. This can become a habit and then before you know it you are in debt and on a slippery slope toward financial ruin and crippling debt. If you stick to only borrowing the amount you NEED, instead of what you WANT, you can save yourself money and hassle in the long run.

Tip #2: Choose your accounts and credit cards carefully. There are literally thousands of credit card companies out there and most every store offers a charge card or account of their own. It can be easy to fall into a life of charging and catch up if you aren’t careful. Instead of sending out offers as soon as you get them, take the time to read the fine print and select only those with steady interest rates and from larger banks, because they tend to hold more weight on a credit report.

Tip #3: Only charge what you can pay back every month. Paying the minimum payment is a detrimental practice that leads to years of paying off one purchase. Instead only charge exactly what you can pay in full each month. Not only is this easier on your finances, but it also reflects the best on your credit report by showing you pay your balances in full and on time.

Tip #4: Opt-out of excessive offers. Whenever you get a credit card or other credit offer in the mail, the company has already taken it upon themselves to pre-screen you and this puts a negative mark on your credit report and can lower your credit score. Take the time to visit sites like donotmail.org or optoutprescreen.com to opt-out of future mailings and pre-screening.

Tip #5: Adopt smart spending habits and learn to live within your means. By doing these two simple things you will learn how to and become habitual in smart financial practices which in turn will positively affect your credit and credit score. Take the time to learn about smart financial practices and how to achieve the things you want in your life without going into debt to do it.

Regardless, of your level of wealth or responsibility when you turn eighteen or open your first credit account, you have the opportunity to start with a solid credit rating and maintain that throughout life in order to be able to access such things as home, vehicle and other important loans that many seek at some point in their lifetimes. Good credit, when properly maintained, can not only bring about ample borrowing situations and credit, but can also offer you better employments, housing and other opportunities.

Credit is used for a variety of things and while borrowing and loans are the brunt of the credit industry, many employers, landlords, schools and other industries are using credit reports as a definition of character before deciding to work or not work with someone on what they desire. Good credit shows responsibility, awareness and self-worth and can bring you more important things in life than just a nice house and a nice car. Take the time to learn about how to obtain and maintain good credit and find yourself with a richer life, some of which may have nothing to do with the money you have in the bank.

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