The first step to legally clearing your credit is to get and evaluate your credit report. This report details your entire credit history for up to seven years for negative entries, and paid off accounts can remain on your report indefinitely. The only exception to this rule is bankruptcies, which can remain on your report for up to ten years after discharged. Understanding your report can be complicated but credit reporting agencies attach instructions concerning reading and understanding your report, and there are a lot of books that deal with credit reports and understanding credit that you can read to get a better understanding of your credit report.

Now that you have an understanding of your credit, it is time to find out what negative entries or obsolete information needs to be updated. Negative entries over seven years old from last activity can be deleted, and items on you report that are not yours or your legal spouse can be removed. Updating your current information such as address, and employment can increase your credit score almost immediately. Keeping an eye on information that is contained on your credit report, and removing or disputing information can ensure that your credit scores are as high as they can be. But, if this seems like an overwhelming task you can always hire a professional repair service like Millennium Credit Service to handle this task.

Begin by understanding that pride of ownership follows pride of earnership. If you want something do not buy it unless you are able to pay for it. Every time that you buy something that you cannot afford you are mortgaging your future.

Stop thinking that you have to have all trinkets that are advertised on TV and in magazines. Stop thinking that you have to buy all doodads that your friends and neighbours buy. You do not. Most of things people spend their money on are not necessary. Most of things you buy will be forgotten very quickly but debt that you used to buy them will hang around and control your life.

Whenever you are tempted to buy something on credit remember that company you are buying from want you to take credit. They want you to take credit because they will make more money from charging you interest on loan than they will make on item that you are purchasing. That is money that you will no longer be able to spend on something else.

Once you have accepted responsibility for your problems you are in a position to begin to deal with them. Start by listing all of your debts and then preparing a budget. When you prepare budget ensure that you will have some money left over each month to reduce your debts and then faithfully apply that money to pay off your smallest debt first. Continue in this way until you are debt free.