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.

Federal laws and agencies govern lender behavior when you apply for and use credit, protecting you from creditors who engage in illegal or bad credit practices. The Equal Credit Opportunity Act: This law prohibits creditors from discriminating against you because of your race, country of national origin, gender, age, religion, or marital status.

A growing number of creditors, as well as insurance companies, employers, and landlords, use your credit score together with (or rather than) your credit history to make decisions about you. Your credit score is a numeric representation of your creditworthiness, and the number is derived from your credit history information.

To begin assessing your debt, you want to get all your debt listed in the same place so that you can see it all at once. The first step is to list all mortgage and consumer debt, including credit cards, auto loans, student loans, and any other personal debt. You can print and use the worksheet provided here to list your current debt situation.

If you don’t have enough money to pay all your living expenses and debts, do not take out a loan that will compound your financial problems. Although personal loans may give you temporary financial relief, more debt won’t fix your money problems. When it comes to improving your finances, you won't find any easy answers or shortcuts to common sense and dedicated budgeting.