Currently, are you having problems with your credit? Are you behind in paying yoru credit card bills or have you beening receiving letters from creditors.

Here are some tips you may find them useful in helping you repairing your credit one step at a time.

Filing for bankruptcy should be the last resort, not the first even for people who are in deep financial debt. Since 2005, the bankruptcy laws have changed tremendously. One of the requirements before filing for bankruptcy is that you "must receive credit counseling from a government-approved organization within six months before you file." In addition, for the next 10 years your credit report will show that you filed for bankruptcy, which will decrease your chances of applying for a loan, obtaining credit cards, or purchasing a home.

However, if you have decided to choose the above option i.e. to file for bankruptcy, you can begin to repair your credit by obtaining a debit card from a credit card lender - such as Capitol One, for example. They will offer you a credit card with a maximum balance of $500.00 provided you place $500.00 in your account. Then you can use the card as you wish, make payments accordingly, and after one year you can apply for a regular credit card as long as you have maintained your account in good standing. This is how you begin to repair your credit one step at a time.

The other alternative for those who decide not to file for bankruptcy is to reputable organizations who specialise in credit repair. Under the Credit Repair Organizations Act, "the credit repair organizations must give you a copy of the Consumer Credit File Rights under State and Federal Law before you sign a contract. They must also give you a written contract that delineates your rights and obligations." Read these documents carefully before you sign on the dotted line.

Credit repair companies must follow specific guidelines such as:

- They cannot make untrue claims regarding their services.

- Payment can only be made after their services are completed.

- They must refrain from conducting any services on your behalf unless and until you have signed the contract with them. If you wish to cancel during the first 3 days, you can without incurring any fees.

It is important that you research each of the credit repair organisation thoroughly to ensure that they are reputable and their counselors are certified and well-trained in handling credit repair. These counselors can help you develop a budget by discussing your financial history and current situation, and give you the tools and resources to help you pay down your credit without having to resort to bankruptcy.

Lastly, it is very important that you check your credit report annually. At the present moment, the law states that you can obtain a free credit report from each of the three agencies: Experian, TransUnion, and Equifax.

Once you receive these reports, make sure you check them thoroughly to ensure that every item is factual. If you have any disputed items, you can write to each of the agencies and note any inaccuracies or incomplete

information, and the changes you request will be noted on each agency's credit report.

I hope that with these tips, you can start to repair credit today. For more credit repair tips, you can check out MoneySenseTips.