Well, you did it. You lived beyond your means and now your credit is bad. Do not feel bad, it could happen to the best of us. Now you are a little worried about what happens next and what you can do to repair what has been damaged.

The best way to get rid of bad credit is to get new credit. Once you have settled your debts through bankruptcy or debt consultation, you are ready to start all over. When you feel it is the right time, respond to one of those pre-approval letters that come to your mailbox almost every day. You will be amazed at how much credit they are willing to give to someone in your situation.

Be smart this time, though. Use the card for a few small purchases and pay them off in their entirety as soon as the bill comes to your house. Do that for the first little bit, then make a larger purchase and keep a balance for a few months and make payments. Be careful not to make too large of a purchase, you still want to pay it off rather quickly.

Maintain this card for a year or two then get a second card and continue the same pattern. By the end of five years, you will be well on your way to credit recovery.