Despite my having ample information about credit repair on my site, Credit and Debt Assistance, I have never been a fan of paying someone to do something that you not only can do easily yourself, but have to do yourself.

In the end, after all is said and done, the only way to repair your credit is to:

1) Make sure what appears on your credit report is accurate.

2) Make all of your monthly payments on time, every time.

3) Pay down your balances as far as possible.

You don’t need a service or an agency to help you with this.  You can do this yourself.  I am providing you straight information on my site to help you help yourself.  Most of it is free.

There are plenty of services out there that will sell you on their services, charge you huge amounts of money (which we already know you don’t have enough of, or else you likely would not be here), and do little more than what you can do yourself for free.  Those that actually do something beyond this are often getting into questionable practices which may in some cases even be unlawful.  It would certainly be bad karma!  Aligning with these people, you run the risk of coming out worse off than when you started.

Save your money, take my FREE 16-part course on credit and debt, and go take care of your own credit issues.

So, is the Credit Repair industry all slime?  I don’t know.  I have not yet seen or read anything to suggest otherwise.  Profiteering on the backs of people who can least afford it by providing a service that is redundant at best, and fraudulent at worst, seems slimy to me.  Do you agree?  Or do you have a positive experience with a Credit Repair company?  Leave a comment on my site and let us know!

We are a world virtually suffocating in it.

Not only are our governments wracking it up to such an extent that they are nearly paralyzed by it, but we as individuals and citizens are so far in it that we are feeling powerless and trapped by it.

What we’re talking about here is debt, and lots of it.

The average family carries a balance of between $7,000 and $10,000 on just their credit cards. Over $1,000 of the average family’s hard earned money goes to interest on this balance every year. Not baseballs and Barbie dolls. Not Christmas presents and birthday presents. Interest. And that’s just the average. Some people owe much, much more!

Americans, for example, spend over $1 trillion every year on their credit cards, and owe more than $500 billion of it. That’s approximately $1,700 of credit card debt for every man, woman and child in America.

If debt continues at the current rate, then one family in a hundred will be forced into bankruptcy. Over 90% of America’s disposable incomes are spent paying back debts. These numbers aren’t all that different in other countries, either.

When you add credit card debt to the regular bills we have to pay each month, we have very little money left to do anything with. Often, emergencies and other unexpected expenses hit us right when we’re least able to pay them.

As a result, some bills go unpaid and others are paid late.

Both of these instances will damage your credit. Sometimes so much that you wonder if you’ll ever be able to get out of debt and get the good credit terms you need for something important like a home or a car.

The truth is that you can get out of debt and you can repair the damage to your credit. It takes some time and a little work on your part, but it IS possible.

Loan terms and approvals depend on your credit score. That number is what determines if you can get credit, what your interest rate will be, and how much money potential lenders will give you. A great credit score is 750, but the higher your score, the better.

It is always a good idea to stay away from credit by saving up and paying cash for your purchases.

However, not everyone has hundreds of thousands of dollars lying around to buy a home, or tens of thousands to buy a car. That is why we need credit. Good credit. So we can buy that which is impractical to save for.

You know you are in trouble when you begin to buy everyday items such as groceries and clothing on credit cards. At this point, you are likely living beyond your means and these credit card bills tend to get bigger and bigger until pretty soon, your cards are maxed out and you’re barely paying the minimum amount due (which will take forever-and-a-day to pay off!). This is a very slippery slope!

Do Not Despair!  There are legal, moral and ethical ways that you can raise your credit score no matter how low it is now.

Here’s what you can do to solve your credit and debt problems:

1. Educate yourself about credit and debt.

2. Make a debt pay-off and credit score improvement plan.

3. Seek professional guidance if needed.

4. Follow through.

There are no secret tricks or magical short cuts here, despite what some say. It took a while to get in to your present situation. It’ll take a while to get out. But get out you will, if you make a plan and follow through.

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Empowering you for financial freedom,
Dave

Please visit http://wowthanksdave.com/credit_and_debt_help where you will find a free 16-part credit and debt course,  blog posts, videos, and links to professional resources that are designed to help you succeed in your quest to be credit worthy and debt free. 
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Permission is granted to use this piece for republishing in such things as blogs, web sites, email, ezines and newsletters, provided  this signature box is left in tact.

John was a hard worker and made a pretty good living for himself and his family.  Like most people, John and his wife Sara had several credit cards between them.  They were fairly responsible with them, never being too quick to incur debt, but over time the balances grew due to various and normal things that life threw at them, such as car repairs, replacing a broken refrigerator, left over medical bills from when Jessica was born, etc.

Jessica, or "Jess" and she’s called, is 3 years old, cute as a button, and has Daddy wrapped around her little fingers.  In general, whatever Jess wants, she gets. All it takes is flashing her big blue eyes, "Daddy pleeeeeeeease," and John can scarcely say no.

Sara hasn’t worked since right before Jess was born.  John and Sara decided that it was a priority for them to raise their own family rather than rely on daycare for their children.  Sara’s been buying books, and making preparations to home school Jess.  And it seems Sara will have another pupil to home school in a few years…Sara’s pregnant.

Since Sara quit working, John’s had to do the best he can to make up the difference in income.  Still, even with John’s job, plus all the overtime he volunteers for, plus the odd jobs he takes on outside of work, there isn’t enough hours in his days to bring in what they really need.

Hence the credit card balances keep rising.  Their debt gets bigger and bigger.  The monthly payments on their credit cards get larger and larger.  Where they used to make larger payments on their cards, now they struggle to make the minimums.

John and Sara reviewed their monthly spending. They weren’t understanding how it was that regardless of how hard or long John worked, or how much they scrimped and saved, they never had any "extra" money at the end of the month. To make up the difference, they wound up charging on the credit cards what they needed.  They never really realized just how much this was compounding the problem.  The payments alone on their credit cards were taking up all of their discretionary income every month.

John was struggling to retain his generally positive outlook.  Working so long and so much, seemingly for little more than paying their credit card debt, he really was finding it difficult to not blame the credit card companies for his trouble.  He had become almost bitter over their debt.

Jess’ birthday was coming up, and John was now faced with explaining to his daughter why she wasn’t going to get the doll house she wanted.  The credit cards were all basically maxed out. This broke John’s heart.  And his spirit.

It’s understandable how a person could feel this way, but it’s important to remember that it’s not the credit card company’s fault.  

Now, I am not about to spend time on this blog defending the conduct of the credit card companies.  I won’t insult your intelligence.  There is no doubt they are in business to make money and they will do anything they can to get as much of yours as possible.

This story isn’t about the credit card companies.  This story is about YOU.

There is great information available at "Wow! Thanks, Dave!" to assist you in avoiding the plight of John and Sara.  Use it. 

There is a time and a place for the use of credit.  Debt can be leveraged for our own good.  However, use it excessively, and it can come to feel like a prison.  So much of your "extra" money each month can get tied up in paying your payments, that you no longer have the means to go do what you want.

And then if something happens and you miss a payment, the late fees can be astronomical.  In many cases, this will even cause the interest rate on your cards to escalate to obscene levels.  All of this makes the problem just that much worse.

Whether you are debt free, overloaded like John and Sara, or somewhere in between, it is important to maintain a positive aire about your financial situation.  Feelings of bitterness, entrapment, hopelessness and resentment hurt no one but you and your loved ones.  To permit yourself to continue feeling such feelings is to guarantee a downward spiral.  For your sake and the sake of your loved ones, you have got to fend off such feelings and the fastest way to fend off such feelings is to maintain a sense of gratitude.

Be thankful for your credit.  Be thankful to your credit card company that they had faith enough in you to allow you the use of their money.  Be thankful every month when the bill comes in, and be thankful when you send them your payment that you were able to repay them in some way for their services.  Be thankful for every penny that your debt decreases every month.

I know for some, this may seem crazy.  Others, airy-fairy.  Yet others may think it’s impossible. Folks, I assure you it works, and no, I have not taken leave of my senses.  Work at this.  Even if you don’t believe it, at least start by going through the motions…say thank you for your credit cards, your use of your creditor’s money, your decreasing balances, for every dime of income you get, and for every bit you are able to pay down your debt. 

Do this.  In time, you will feel a shift in your thinking and your feelings.  Where there was once the illusion of bitterness, hopelessness and entrapment, there will be gratitude and freedom.

Maintain gratitude, and the illusory shackles of debt fall away.

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Empowering you for financial freedom,
Dave
http://wowthanksdave.com/credit_and_debt_help
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Permission is granted to use this piece for republishing in such things as blogs, web sites, email, ezines and newsletters, provided  this signature box is left in tact.

Here’s a story I read on MSN Money which addresses misinformation about credit cards. The writer, Liz Pulliam Weston, managed to address a few things I didn’t even know! I’ve included the story here for your convenience. I wish I had written it. It’s quite good. Enjoy!

There’s no excuse when you fall for certain myths. The one proclaiming Barack Obama is a Muslim? You could have quashed that one by checking Snopes.com. Bill Gates sharing his fortune with those who forward an e-mail? That’s been debunked on About.com’s Urban Legends since 1999.

But the legends that grow up around credit cards aren’t quite as easy for the average person to research and refute. Credit card issuers can be pretty closelipped about their practices, and even those who proclaim themselves experts in the field can get it wrong.

So I talked to spokespeople from Visa, MasterCard, American Express and Discover to get the scoop on their policies, and with Fair Isaac, creators of the FICO credit score, for details on how cards really affect your score.

Myth No. 1: Your credit card account isn’t opened until you activate it using the issuer’s toll-free number.

Several readers have changed their minds about opening new credit cards after they’ve applied, then asked if they could undo the damage to their credit scores by not calling to activate the card.

Sorry, but the ding to your credit scores — typically 5 points or less — happens as soon as the issuer pulls your credit reports, which is usually within seconds of receiving your application. The account shows up as active on your credit reports shortly after the card is approved.

You do need to call the activation number, though, if you ever want to use the card. That number is typically listed on the removable sticker on the front of your card when it arrives in the mail.

Myth No. 2: You can stop unsolicited credit card offers by sending them back in the postage-paid envelopes.

Judging by my e-mail, some of you have developed a hobby trying to irritate credit card companies. You write “take me off your mailing list” repeatedly over the unsolicited applications they send you, then stuff the paperwork into the postage-paid envelope — sometimes adding other junk mail to increase the volume and cost the issuer more in postage.

Sorry, but all your efforts are for naught. Yes, you might cost the credit card company a few pennies, but it would cost them far more to track down your name on their mailing lists and remove it, so your envelope just winds up in the garbage.

If you want to cut the number of unsolicited credit card offers you receive, you need to get off the mailing lists before they’re compiled. Here’s how:

Sign up with the credit card bureaus’ opt-out service. This service removes you from the marketing lists they sell to credit card issuers and can be reached at 1-888-5-OPT-OUT or OptOutPrescreen.com. You’ll need to provide your Social Security number and a few other pieces of identifying information. Opt out of “information sharing” every chance you get. Anytime you use your credit card, make a donation or sign up for a new service, your information could be sold to a credit card marketer. Ethical companies give you a chance to opt out. Take it. Follow up with those who sell your data. Sometimes you won’t be able to tell who sold you out; other times, it’s obvious. I raised hell with the Greater Los Angeles Zoo Association after I bought a family membership and promptly received an application for a GLAZA-themed card.

Myth No. 3: Merchants may require identification, such as a driver’s license, when you pay with a credit card.

Merchants’ agreements with Visa, MasterCard, American Express and Discover specifically forbid them from requiring identification. Your signature is supposed to be enough.

Furthermore, merchants’ contracts with Visa and MasterCard are supposed to prevent them from even asking for ID. American Express and Discover don’t prohibit asking but strongly discourage it.

Merchants typically ask for ID because they’re trying to reduce their own fraud costs. But if a clerk memorizes or writes down vital information from your driver’s license — your address or date of birth, for example — you’re the one who could be at greater risk of identity theft.

Myth No. 4: You can deter identity theft by writing “Ask for ID” instead of your signature on the back.

See above. You’ll certain deter use of your card, because merchants aren’t supposed to accept one that’s not signed on the back, and that could affect you as much as any thief.

Myth No. 5: No-limit credit cards allow you to buy whatever you want.

Most credit cards come with credit limits, but some cards advertise having “no preset spending limits.” With high-end Visa cards, for example, customers are allowed to exceed their credit limits; with traditional American Express charge cards (the green, gold, platinum and black versions), there is supposedly no preset limit at all.

Except that all cards have limits, said Curtis Arnold, the founder of CardRatings.com and author of “How You Can Profit From Credit Cards.”

“No-preset-spending-limit cards are more marketing hype than anything,” Arnold said. “These cards do have a credit limit that is typically based on your income and spending patterns.”

At American Express, the actual limit on your charge card — the kind that’s supposed to be paid in full every month — can vary based on your financial circumstances, your credit history and your record as a customer, explained Desiree Fish, an American Express spokeswoman.

If, for example, you’re a good customer who typically spends $3,000 to $5,000 and you want to charge a $50,000 luxury car to your card, you’d be smart to call Amex first to make sure the transaction would be approved.

If, on the other hand, you’re in possession of an American Express Centurion Card, a black version that usually isn’t even offered to folks who charge less than $250,000 a year, you probably needn’t worry about getting approval for the same transaction — unless “your people” forgot to pay last month’s bill.

Myth No. 6: If you pay your credit cards in full and on time, you don’t need to worry about your cards’ effect on your scores.

Paying your balances in full is good for your wallet, and paying on time is good for your credit scores. But you can still mess up your credit even if you’re diligent in doing both.

How? By using up too much of your credit limit. Your credit scores are incredibly sensitive to how much of your available credit you use, especially on your credit cards.

And the balance used for these calculations is typically the balance that shows on your most recent credit statement. So if you’ve charged $9,000 on a card with a $10,000 limit, your scores will reflect the fact that you’re using 90% of your available credit, even if you pay off the balance the day you get the bill. Such a misstep can knock dozens of points off your scores.

How to fix this? Ask for higher limits, spread your purchases among several cards or make two payments each month — one just before the account’s statement closing date and another just before the due date. The first payment will reduce the balance that is reported to the credit bureaus and is used to calculate your credit scores. The second payment ensures your account won’t be marked late, since many issuers require some kind of payment between the statement closing date and the due date, even if a payment was made earlier in the billing cycle.

Myth No. 7: High credit card limits are bad for your credit scores.

I’ve heard this one repeated by folks who should know better, including mortgage brokers and other lending professionals.

Here’s a tip: If you’re told the reason your credit scores aren’t higher is because you have “too much available credit,” that pretty much means you have great scores. Typically the only reason you’d hear this “negative” is because there’s nothing else wrong with your credit.

You certainly shouldn’t ask a credit card company to lower your credit limits or shut down cards, since either action could hurt your credit scores, unless a lender specifically requires you to do so as a condition of getting a loan. Even then, you should try to keep your oldest and highest-limit cards open.

But you also shouldn’t run out and open a bunch of new credit card accounts without considering the consequences. Each new account application can ding your scores and represents another set of rates, due dates and terms you’ll have to track. Apply for credit sparingly, and don’t worry if your issuer rewards your good credit habits with a higher limit. It knows you can probably handle it.

Myth No. 8: A credit card company can’t change my rate unless I mess up.

Credit card issuers lately have been vigorously disabusing customers of this notion, as I wrote in “The credit card party is officially over.” Many borrowers have seen their rates double or triple even though they haven’t been late with a payment or suffered any other credit setbacks.

Credit card companies can alter virtually any rate or term with just 15 days’ notice. Their freedom to do so may be ending, though. Federal regulators have proposed banning rate increases on existing balances, except in limited circumstances, such as when a borrower skips a payment. Meanwhile, some in Congress have proposed more restrictions and want issuers to give more notice of any changes. Stay tuned.

Myth No. 9: Rewards cards are pretty much the same.

This myth takes different forms, including “the best rebate you can get is about 1%” or “you have to pay an annual fee to get a rewards card” or “the rewards aren’t worth the effort to redeem.”

It’s all bunk, said Arnold, of CardRatings.com. Consumers who shop around will find big differences among rewards cards. Today, the best cash-back rewards cards have no annual fee, and you should expect a rebate in excess of 1%. Check out “The 15 most rewarding credit cards” for some insight on what you may be missing.