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Credit card issues are something a large part of the American population faces. When dealing with credit reports and poor credit scores people often feel like they are in a dead end. Their options for loans are limited and getting their debts sorted out seems like an unending crisis. Especially with the recent problems and recession which resulted in loss of jobs for many, a lot of people have filed for bankruptcy. This is not the solution and it is possible to fix your credit by planning and patience. The first step in dealing with bad credit is of course to find out what you owe and to whom.

In most cases, if a loan has been denied or credit has not been granted it is possible to get a free credit report stating why from the agency. In case of any amounts which are unaccounted for, it is possible to question it and settle the dispute. You need not take up a burden for which you are not accountable. Dig out the copies of your bills and the documentation and send all the evidence when you send the dispute form. Once the information has been correctly updated, a new copy of the report can be requested for from the credit bureaus.

The solution is to settle the debt. You cannot walk away from the money you owe. Therefore you need to plan how to go about the process of paying. Call your creditors and work out a plan of payment. Negotiate with them on the payment and you may be able to work out a due date that gives you more time to gather your finances or even reduce monthly payments so as to not be reported as a defaulter.

Firstly decide not to charge any more purchases to your existing cards. If you have different cards with different balances and interest rates, do a research and transfer all the balance to a single card. It is easier to pay for one single card than remember and sort out a number of different due dates and amounts. Be sure that you get records of agreements made in writing that your credit will be written as paid off once you do so and an adverse report will not be filed.

Once that is done, or if due to a previous balance transfer it is not possible work on the card with the highest amount due or the highest interest rate. See what resources you can gather from your salary and also liquidate your assets if you have to and end the debts. Once you do that you are free to move on to a new phase in your life as a debt free man.

The next step is to close your credit card accounts. Do not go cut your cards and think the deal is over. It does not result in closure. It is not wise to close all the credit card accounts at once, it can still damage your FICO scores or credit scores. Work out a strategy by which the debit to credit ratio is 50%.