If you're in over your head and can't afford to keep up payments on your debts, there are a number of strategies that can help to make things more manageable.

While your first inclination may be to pretend the debt isn't there, the best option is to take action yourself, before delinquencies ruin your credit rating. First, call your credit card company and ask them to lower your finance charge and annual fee. This may seem like a long shot, but there is a great deal of competition between credit card companies and they may agree to your request just to keep you as a customer.

If you really can't pay the bills, call or write the credit card company and explain the problem. They may offer to lower or even freeze payments if you are having a temporary cash flow problem. If you call them before they call you, they may not report you to the credit agencies.

Often, just talking through your credit problems with a professional can relieve stress and help you see your way out of trouble. Many employers have an employee assistance program to help you get back on your feet.

Review Your File
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The Federal Trade Commission (FTC), the nation's consumer protection agency, has prepared a brochure, Your Access to Free Credit Reports, explaining your rights under the FCRA and how to order a free annual credit report.

You can order your free annual credit report online at www.annualcreditreport.com, by calling 1-877-322-8228, or by completing the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.*

When you receive your credit report, look it over carefully. Are your name, address and Social Security number correct? Do the lines of credit listed belong to you? If you find errors, notify the credit bureau in writing and include any backup materials such as canceled checks. Although they are supposed to share information, it's a good idea to send a copy of your letter to all the credit agencies.

Experian
1-866-200-6020
www.experian.com
Equifax
1-800-685-1111
www.equifax.com
TransUnion
1-877-322-8228
www.transunion.com