Caleb Brown: Hi! I am Caleb Brown and I am a member of the Financial Planning Association. I am here to discuss how to repair your credit. Right now, I am going to talk about getting out of debt.

To get out of the debt, track your spending. For one month record where and how much money you spend wherever you go. By the end of the month, you will have the clear idea of how you spend your money. Be sure to monitor your debt load too. Make a list of credit cards, car loans, and other debts with columns for how much you owe, the minimum payment, the interest rate and how long it will take you to pay it off. Make an effort to pay more than the minimum amount due on credit card accounts, to liquidate debt.

If you find yourself already overburdened with debt what can you do? First, contact your creditors directly. By explaining the situation, you may be able to get them to reduce your monthly payment. Generally creditors are happy to work with people who want to pay back the debt, but are experiencing temporary hardship. If you owe money to several creditors and cannot pay them off, you may want to enlist the help of a non profit debt counseling agency. These organizations are for free and low cost counseling in most communities and will work with you to set up a repayment plan that will satisfy all your creditors.

Remember, a poor credit record can serve as a major road block to your financial goals. Fortunately, poor credit can be repaired over time. Take a good look at your credit history and start to improve your credit be persistent. Good credit will help you meet your long term goals for you and your family.