Before you can make any progress on your debt you must get your spending under control. For one-month record everything you spend and cut back on the things that you do not need, this will help you start saving money quickly. To begin to get out of debt you will need to pay off your high interest card first while paying only the minimum on the other cards until one is paid off. When you have the one paid off take all of the money and put it towards the next card. Only pay the minimum while you are actively working on another card. If you continue to pay the minimum, it will take you years to pay off a card.

Do not take the easy way out of debt and borrow more money against your home loan or 401k. These loans can be dangerous and do not change your spending habits. In fact, most people who take these loans find themselves back into credit card debit quickly. Start building an emergency fund as soon as possible to avoid falling into the trap of having a major expense with no savings. If you have more debt than you can handle you need to get help from a debt relief company before it is too late. Nothing will break your back faster than uncontrolled debt so start today by getting a handle on your debt.

Well, here are the new normals of the economy: Long term unemployment, with “finding a job” being the daytime occupation. The article further indicates, that with employment close to 10% and little or no hiring from the private sector, this could be the new normal. Another aspects are Renting vs Owning, as experts claim that real estate is no longer the great investment that they a few years ago claim to be, and more expected declines on property prices, people may expect to rent rather than buy a house. More Savings as people opt to save money due to the uncertainty of the economy, and Higher taxes for the rich.

If you can’t answer these questions, you have some homework to do — especially if you’re planning to apply for a mortgage loan in the near future.

Here are some step-by-step instructions to help you obtain your credit reports, review them for accuracy, and correct any errors you come across.

Step 1 – Understand how your credit affects you.
When you apply for a home mortgage loan (or some other major purchase), you can be sure your credit will go under the microscope. Mortgage lenders will analyze your credit to find out what risk category you fall into.

When your credit score is high, your risk factor is low. In this scenario,you’ll have a good chance of qualifying for a loan. But when the opposite is true — low credit score and high risk factor — you could have trouble obtaining a loan.

Credit reports are maintained by three credit reporting companies (sometimes called credit bureaus or agencies): Experian, Equifax and TransUnion. Your credit score is based on the information contained in these credit reports. Three agencies, three reports, three credit scores … all about you!

Step 2 – Request copies of your credit report.
According to the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report per year from each of the credit reporting companies — Equifax, Experian, and TransUnion. To request your credit reports from all three companies, visit www.AnnualCreditReport.com, or call 1-877-322-8228.

If you request your report online, you should have access to it immediately. If you request your credit report through the toll-free number, it will be processed and mailed to you within 15 days.

Your credit report will not come with a credit score, so you’ll need to purchase this separately. You can obtain your credit score by visiting www.MyFICO.com. This website is owned by Fair Isaac’s, the organization that converts your credit reports into credit scores. Here’s a quote from Fair Isaac’s:

“FICO scores are your credit rating. Most lenders base approval on them. You have three FICO scores, one for each credit bureau, and you can only get all three from myFICO.”

Step 3 – Review your credit reports for errors.
Examine your credit reports closely for any errors or inaccuracies. Make sure your personal information is correct and up to date. Check for loans or lines of credit that aren’t yours, as this could be an indication of credit fraud. Anything at all that seems out of place, write it down for further investigation.

Step 4 – Start the correction process immediately.
Under the Fair Credit Reporting Act (FCRA), credit reporting companies are responsible for correcting inaccurate or incomplete information in your credit report. So don’t hesitate to exercise your rights under this law.

If you only find errors on one report (for example, the one provided by Experian), you only need to contact the company associated with that report. Visit the company’s website to find instructions on how to begin the correction process. By law, each credit reporting company must publish their correction requirements.

You can find these instructions on each company’s website:

* www.experian.com
* www.transunion.com
* www.equifax.com

Tell the company in writing what information is inaccurate. File a copy of your initial request, as well as any subsequent communication (such as their response to you). Start a folder and label it with “credit report” to keep your documents together. Keep the folder secure, as it will obviously contain sensitive information.

Step 5 – Follow up thoroughly.
The credit reporting company will investigate your claim within 30 days of receiving it. But why wait? I recommend contacting them after 10 business days, at least to make sure they’ve received your correction request. Follow up regularly after that. Don’t allow your issue to “slip through the cracks.”

Step 6 – Continue your education.
If you believe your credit report contains errors, educate yourself on the correction process. This article provides a good overview, but an important issue like credit deserves a more complete education.

Websites worth a visit:

The FTC’s Credit Center:
www.ftc.gov/bcp/conline/edcams/credit/index.html

Credit Advice from the Better Business Bureau:
www.bbb.org/Alerts/article.asp?ID=616

Credit Section of About.com:
www.credit.about.com

Credit Learning Center at Home Buying Institute:

http://www.homebuyinginstitute.com/credit.php

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlink intact.

Brandon Cornett is the editor of HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. To learn more about credit reports, visit the credit learning center at http://www.homebuyinginstitute.com/credit.php

We all want to have enough money to pay our bills and have enough money left over to live. To accomplish this, we’re expected to manage our money and our credit wisely. Our credit score is a picture of how well we handle our debts. What are the typical purchases and decisions that are affected by a person’s credit score?

• Applying for a job
• Buying a car
• Purchasing a home
• Renting an apartment
• Applying for insurance
• Requesting a credit card
• Opening a bank account

This is only a short list of products and actions that involve a credit score. So, what is this mystery called Credit Scoring? It all starts with your “credit report”.

The three national credit reporting agencies are Equifax, Experian and TransUnion (with smaller ones including ChexSystems). These agencies act as warehouses for your information. Your credit report contains personal data, which includes your name (priors and variations), birth date, addresses, Social Security number, and past and present employers. In addition, creditor history, inquiries or authorized credit checks, relevant public records and collections are also used for identification purposes Your credit report card includes your creditor history detailing your accounts, payments to banks, credit unions, finance companies, mortgage companies, credit card companies, retail stores and other creditors. These credit lines detail if you pay on time, balances, credit limits, burden of debt and how long you have had your account. Other than you, outsiders can access your credit report by making an inquiry. Credit card companies are notorious for making inquiries, and you can see on the credit report who has accessed your account, and when.

Relevant public records and collections are also on your credit report. This may include bankruptcies, foreclosures, tax liens and any collection agency debts you may have incurred. A foreclosed property can remain on your report for as long as seven years, Chapter 7 bankruptcy for 10 years and, depending on your state, unpaid tax liens can remain on your credit report indefinitely.

The industry standard for calculating a credit score was invented by The Fair Isaac Corporation (FICO). The scores generate a three digit number ranging from 300 to 850. Credit scores are used to assess your level of credit risk by predicting whether you will pay back your credit obligations in a timely fashion. The higher your score, the better credit risk you are. Because there are three different credit agencies, consumers who have a credit report have three FICO scores. Creditors use these scores to determine if they are going to grant credit to a consumer and what interest rate they will charge.

Are you 100% confused yet? It might bring some consolation to know that information sharing is getting better. Prior to 2001, consumers did not have access to their credit scores. Now you can get free copies of your credit report once a year from each of the three reporting agencies.

Uncle Credit Score is watching you and constantly adding or deleting information. But you do have influence over your score and the fluctuations that can have instant impact. The following is a sampling of some actions you might take that can affect your score:

• Paying your mortgage on time
• Applying for a credit card
• A late payment or closure of a credit card

Your level of debt and payment performance account for 65% of your FICO score. Lenders can also consider your income, a spouse’s income, an appraisal report from a licensed appraiser and other factors when considering an application for credit. If you are turned down for credit, by law, lenders must advise you of the reason in a rejection letter. There could be an error in your credit report which you can fix and possibly increase your score. All the more reason to check your credit reports regularly.

Kurt Lehman is a financial services expert and writes about ChexSystems banks and problems as well as payday loan debt