Maintaining decent credit can be very daunting and stressful. But living with bad credit could be worse. We're all human, and how you got to this level of plain insanity is just that ..... human. If you got here because you were irresponsible, then consider this a learning experience. If you got here because there was a divorce, illness, a layoff or another set of unfortunate circumstances, then there's a silver lining. Which ever is you, help is closer than you realize. Improving your credit rating means that you take positive action and change your approach toward money. Follow these steps and you could be on the road to debt recovery.

First off request a copy of your credit report from a credit bureau. There are a lot of sites online that offer one free report per year. Some even offer you an extended service, after the free trial you pay like $15 a month. Don't do it, go for the freebie. It's just as thorough and you won't get stuck paying for another bill. Just make sure all three bureaus come up. Look it over and if there's an mistake, dispute it with the bureau online or by mail and ask them to correct the error. It might also help to contact the creditor who reported the error. Some creditors will contact the bureau on your behalf.

If the bad marks on your credit report result from outstanding debts, repay them as quickly as possible. Pay off those with the highest interest rates first. If your debts are overwhelming, contact a nonprofit credit-counseling organization to work out a debt-consolidation plan. A counselor will help you consolidate your debts and will contact your debtors on your behalf to reduce or eliminate finance charges. This can reduce your monthly payments by up to 40 percent.

Steer clear of any services that offer you credit-repair or debt-consolidation loans. These companies will plunge you further into debt. Be suspicious of any company that advertises aggressively or sends unsolicited mail or e-mail.

Close your credit accounts and cut up the cards. In some desperate cases you might have to sell valuables or liquidate assets that will help you repay your debts. Buy the bare essentials (food and gas) and use the rest of your earnings to pay off your consolidated debts.

Work with your credit counselor to repay all of your debts. Meanwhile, live a life that will help you re-establish good credit. Pay rent and utilities or mortgages promptly, keep the same residence and job, maintain savings and checking accounts, set a budget and stick to it. I know it sounds hard but you'll be suprised what someone could adapt to. And always remember there's an end in sight.

Once you have repaid your debts, apply for a new credit card to build a good credit history. It might be easier initially to get a department-store or gasoline credit card or one from an employee credit union. Promptly pay off the balance of the credit card monthly to build good credit. If you don't qualify for a regular credit card, apply for a secured one. With a secured credit card, you fund an account up front and then "charge" expenses on it. This card will show up as a credit card on your credit report and remember to use it responsibly. This "retraining" will turn into good habits and help you build a good credit history.