Everyone hates having debt, but most people can’t feasibly make a big purchase or handle a crisis without taking on some kind of debt, like student loans, auto loans, and credit cards. Debt happens to everyone at some point. However, that doesn’t mean you can’t do anything about it. Here you find some tips to start getting out of debt.

The federal Truth in Lending Act makes it easy to compare credit card offers, because it requires credit card companies to provide written information about the credit card terms. Do a comparison of credit cards fees, rates, APRs, and balance calculation methods before you accept even a preapproved credit card.

A debt collector may agree to let you pay less than the total amount you owe on a debt. Although settling a debt shows up as negative information in your credit report, negotiating a settlement indicates that you took responsibility for paying as much as you could on the debt. Your credit report will show that the settled debt is not outstanding anymore.

Your credit report contains information your current creditors and potential future lenders review to make decisions about your creditworthiness. You are entitled to one free copy of each of your credit reports every 12 months. To order your free reports, go to AnnualCreditReport.com, or call 877-FACT-ACT. For a comprehensive picture of your creditworthiness, order a copy of your credit report from each of the national credit reporting agencies, not just from one.

Avoiding debt and establishing a good credit standing play an important role in the lives of Australians. Today, the rewards for being a consumer of good credit standing have never been greater, but, unfortunately, the penalties for being constantly in debt have also never been greater. Learning how to set financial goals, use credit advantageously, avoid identity theft and implement a budget are important skills for Australian consumers.

All credit is not created equal. There are many forms of credit available, and getting familiar with credit types can help you become a better credit consumer. Secured: With this kind of credit, the creditor guarantees that it will be paid back by putting a lien on an asset you own. The lien entitles the creditor to take the asset if you don’t live up to the terms of your credit agreement.

Debt collectors who pursue old debts are not breaking any laws unless they violate the Fair Debt Collection Practices Act (FDCPA) or your state’s debt collection laws. Beware fast-buck motives, though! Some debt collectors go so far as to Contact consumers about debts that have been charged off as uncollectible.

When a debt collector contacts you about a debt, he must send a written statement of your right to request written verification of the debt and your right to dispute the debt. Request verification of the amount money you owe and to whom you owe it if the debt is not yours or you think that you owe less money than the debt collector wants you to pay.

To ensure that your debt management plan helps you get out of debt, you must take an active role in overseeing it. Even when working with a reputable credit counseling agency, problems can develop if you participate in a debt management plan. Follow these tips to minimize the potential for problems: After your counselor tells you which of your unsecured creditors have agreed to participate in your debt management plan, contact them to confirm their participation before you send the counselor any money.