Maintain a log of every attempt you make to rectify erroneous information from your credit report. Make a note every time there is contact, including correspondence by email or postal mail. Make sure to keep records of any calls you get. Also make sure to get all dispute letters certified to show that you mailed it, and that it was received. Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. Remember that you agreed to pay that interest when you signed the contract. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.

Unfortunately, sometimes you have more debts than you have money to pay them off. Take the money you have set aside for debt payments, and divide it up into portions for each debtor. A small part payment is always going to be preferable to those you owe money to than no payments at all. By making regular contributions to your debts, you should be able to keep the collection agencies at bay.

Begin rebuilding your credit score by making sure that all your monthly bills are paid on time. If this is all you can afford, pay the minimum balance. You need to rewrite your credit history, so you don’t want to miss a single payment. A good way to repair your credit is to begin to build it back up. Consider a card that requires payment in advance; this will improve your score without the risk of failure. Potential lenders will be sure to see that you can be relied upon and are worthy of credit. No matter what kind of credit situation you face, the best way to fix it is to pay your outstanding debts. Once the balance is paid off, the account starts aging on your report and more recent activity will replace it to show that you are properly handling your bills.