Having credit cards and loans that you pay regularly is a good thing in the eyes of lenders. At the same time, having credit available often brings the temptation to buy things you can't really afford. The key to good credit management is in finding a comfortable middle ground. To guard against overspending, try to think of credit as a tool that gives you more financial freedom - not more stuff.

If you are experiencing financial problems, consider these options:

• Developing a Budget
  
  

  The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. The public library and bookstores have information about budgeting and money management technique. Software programs are also available. For more information on budgeting, see the Budgeting section.

  
  
• Contacting your Creditors
  
  

  Contact your creditors immediately if you are having trouble making ends meet and paying your bill.Tell them why you are having trouble and try to work out a modified payment plan that reduces your payments to a more manageable level.Don't wait until your account has been turned over to a debt collector. Failing to contact your lender may result in negative information being reported to a credit bureau.

  
  

  If you fall behind on your mortgage, contact your lender immediately. Most lenders are willing to work with you if they believe you are acting in good faith and the situation is temporary. Discussing your situation with your lender may help to avoid foreclosure.

  
  
• Credit Counseling
  
  

  If you and your lender cannot work out a plan, contact a housing counseling agency. Call the local office of the Department of Housing and Urban Development or the housing authority in your state or county for help in finding a legitimate housing counseling agency near you. You can also find a list of HUD-certified counseling agencies on HUD's Web site.