Everyone has debt but not everyone knows how to clean it up. Here are ten ways you can clean up your debt and still afford to a little of life’s luxuries.  Also get our FREE report!

1. Get a copy of your credit report. Using the report, you can find out if there are any incorrect entries on it and have them removed. Remember, you need to look at the reports from all three reporting agencies: Equifax, TransUnion and Experian as there may be different information on each one. 

2. Get Your FICO Score: These agencies also keep a FICO score listing for you. Many credit companies will look at your FICO score when determining whether to issue credit or not.  

3. Review your credit history very closely: Sometimes strange things can show up on these reports. The creditors are quick to make sure anything detrimental you do is reported on there; however, they are very slow at removing any mistakes they make. You may also find some things that aren’t even yours and are being reporting incorrectly. 

4. Make a list of your debt: Write down all of your current debts, how much they are and to whom they are being paid. Once you have this information, you have to decide which are the most important and have to be paid such as mortgage, power, car, and so on.

5. Call your creditors: If you are having problems making payments, you need to call your creditors to try to get a lower rate or renegotiate the bill. Most agencies are very willing to help you because they want to be paid and they realize payment arrangements may make the difference in whether or not they receive any money at all.

6. Pay down the highest interest debts first: If you have two credit cards and one carries a 9% interest rate and the other only 4%, make sure to pay the 9% rate first. This one will cost you more money in the long run and getting it paid first will help you be able to pay other bills down the line. 

7. Pay everything on time: Even if all you are paying is the minimum payment, at least you are making an on-time payment. When you are late, it shows up on your credit report and can adversely affect you in the future. If you can’t make your payments on time, call your creditors and they will most likely work with you. 

8. Don’t max out your cards: If for some reason you are unable to make a payment, late charges will drive you over your limit, which is not a good thing. This will add additional ongoing charges, raising your total bill. If you get into this situation, call you creditor and   find some way to work with them. 

9. Don’t have too many cards: Having too much available credit is as bad as having no credit at all. The possibility of going into serious debt in a day can hurt your rating. Limit the number of cards you have to no more than three, if possible.

10. Don’t share credit with someone else: This means don’t co-sign with someone else because if they fall behind on payments or stop altogether, you are stuck holding the bag. Even though they co-signed, you will be held responsible for everything. If payments are made late by them, it will show on your credit score. Don’t risk your own good credit with someone else’s problems.