First, second and third - pay your bills on time. Living within your means doesn't just feel good, it has great financial implications. If you do find yourself slipping into serious financial difficulty, take action immediately to fix the problem:

Contact Your Creditors

• Explain your situation
• Ask for a reduced or delayed payment plan
• Let your creditors know you are willing to pay the obligations, but don't make promises you can't keep
• Most creditors will work with you if you give them a realistic payment plan and follow through as promised

Get Outside Help

• Find a professional non profit credit counseling service to help you
• Organize your finances
• Set up a realistic budget
• Understand the wise use of credit
• The National Foundation for Credit Counseling (www.nfcc.org or (800) 388-2227) can help
• They will give you the address and phone number of the Consumer Credit Counseling Service closest to you
• CCCS is a non profit organization that offers confidential counselling and helps create a debt management plan for a small fee

Beware of Fee-Based Credit Repair Clinics

• The Federal Trade Commission (FTC) cautions consumers about these companies
• Remember: Credit repair clinics cannot do anything for you that you cannot do yourself for FREE