What should you do if you need to repair your credit? Stop for a moment, think and listen. Should you find yourself in serious debt have a good long think about the situation and pay attention to whatever is happening on your credit report. This article will be analyzing both the good and bad things that are available to you, the debtor.

Firstly, we should examine the bad credit situation and then the choices you have regarding protection from both the creditors and collection agencies. The IRS are entitled to take your money if you are legally obliged to pay such things as child support, education fees and income tax. In other words, if you are in debt for one or more of these things, any tax refund you have may well be deducted to repay the debt. However, the IRS must tell you before doing so.

Missed payments on insurance policies may result in the loss of your property. You have some protection, depending upon the State, with regards to late payment on utilities eg heat cannot be cut during particular months of the year and most States must send a written notice to disconnect, giving you time to pay. You may be lucky to find an insurance company that has a "grace period" clause.

Whenever you can, remember to "stop, think and listen". Sometimes, it may be possible to make part payments for a short time on certain accounts, provided you make prior arrangements with the company - this is considered better than making no payment at all and indicates that you are at least trying. Consider also that, even if a debt is "written off", you may still be asked to pay the taxes and other expenses, especially if the creditor sends it to the IRS for review. You may even have to pay the bill in full at the end of the year if they so decide. The best way to avoid this happening is to communicate with the creditor from the first instance when you are experiencing difficulties and politely request an extension of time to pay.

It is a reality of the business world that most people who provide credit want their clients to be happy and to become return customers and they will most likely give you an extension in light of this. Having your creditors on your side will help prevent further problems.

Yet another, temporary, solution is to continue to make minimum payments on your overdue bills if at all possible until you are able to pay more. This means that the following payments will be bigger, but at least you will prevent your name from going to the credit bureau.

Avoid the situation where the creditor asks for payment immediately - this will add more costs to the debt you already have. When you have the money, pay the bill - don't use services that charge you to send the bill. If the creditors will not allow you to make part payments or allow an extension, then it is probably time for you to seek the services of a debt counselor. They will do all they can on your behalf to fix the problem. Whilst it is tempting to have an argument or become abusive, it will not help your case any and may even cause you further grief. Don't contact the creditors or collection agencies if you have an overdue bill or if you want to request for a credit report as this will just alert them to the fact that it hasn't been paid and it will give them the chance to start a new debt.

There are millions of people that are threatened by collection agencies and creditors each day. To avoid this, or to get out of this situation as quickly as possible, remember, you must find a solution to effectively repair any bad credit. Before you act, "stop, think and listen".