If your financial situation is precarious but you are still able to meet your commitments then you should be commended. If, however, you are unsure as to whether you can continue to meet your debt repayment obligations you are effectively on the cusp of becoming a delinquent payer. It is imperative that you take action now to stop yourself slipping into the same category as people with bad credit records.

By falling into the ?bad credit? rating category it effectively means that you are seen by all financial institutions and banks as a high risk prospect. The ramifications of this will be that any future borrowings you seek will attract much higher rates of interest and be subject to very tough terms and conditions. In the worse possible scenario you may even become ineligible for any future loans.

Credit repair debt consolidation helps you get control. Here are a few excellent suggestions on how you can take charge of the situation. The following credit repair debt consolidation tactics will assist you to improve your credit rating which will in turn be positively reflected in your ?credit score?. If you follow the recommended plan of action you may avoid becoming a high risk borrower.

First Action

You should immediately request a free copy of your current credit record. There are at least three organizations from which you can access this vital information. For residents of the United States these organizations are TransUnion, Experian and Equifax. You should request an updated report every three or four months so that you can closely monitor the position of your records.

It is recommended that you closely scrutinize the records and contest in writing anything that is not accurate (like the report of late payments that have not happened). By contesting disputed recordings you could possibly improve your credit score markedly. This is a vital step, and one that should definitely not be overlooked, in your credit repair debt consolidation program.

Second Action

Prioritize each one of your current debts and take steps to pay each of them off in a particular order. You need to analyze which of your debts is causing you the most financial distress. For example, it is likely that your credit card issuer charges you about 2% per month compounded interest and other loans probably have an interest rate of around 18% per year. It therefore definitely makes more sense for you to try to clear the credit card debt as a priority as this will save you the most money in both the long and short term. While you concentrate on arresting the credit card debt you should only make minimum payments on all or your other outstanding loans. Focus in clearing the high-interest loans first.

Third Action

Regularize your payment schedules by always paying repayments on time. By paying before the actual due date of a monthly repayment it will help maintain, if not improve, your current credit score.

Fourth Action

Get a secured credit card which will not only raise your overall credit score (which is critical). This action will also fast forward your credit repair debt consolidation efforts.

Clearing debt is not an easy task, however, if you take a pro-active approach to this credit repair debt consolidation plan you should quick track your way to financial freedom.