Mark Andrade

So you want to get rid of your debt? Now which balance should you pay off first and where do you get the money? We explore several options, along with their pros and cons.

Many consumers, especially students, find they do not have an adequate credit history to qualify for traditional, unsecured credit cards. If you're one of those people who can't get credit because you either haven't built a credit history or yours is already damaged, secured credit cards might deserve a look. The best secured credit cards allow you to convert them to unsecured cards after a certain period of timely payments which saves you money in the long run.

Actively managing your credit accounts and revolving loans can gain you a better credit score and save you money. If your score is low you could end up paying more when you go to buy a home, a car, or when applying for new credit. It can also affect how much you can borrow and what interest rate you get.

Having trouble getting a card because of no credit or a bad credit history? Many banks and credit card companies offer easy to get credit cards designed to help people build or rebuild their credit. It pays to understand the pros and cons though before making the leap.

We have a culture of debt in this country and for many it has become a huge problem in our current economic climate. For years, it was almost a rite of passage to saddle yourself with car payments, mortgage payments, and credit card payments beginning at an early age. While it makes sense in some cases to take on debt, many people who have had the rug pulled out from under them in this recession are rethinking this logic.

Credit bureaus do not always maintain up-to-date and accurate information. It is your obligation and right to review your credit report at least once a year, more often if you have been turned down for credit, for potential errors and omissions. Making this a habit can help you avoid a negative outcome the next time you look for credit and help you build your credit score to the levels you need to accomplish your goals.

Your credit score is included on most credit reports viewed by creditors and potential creditors. It is essentially a numerical calculation that indicates your creditworthiness and the risk you might default on your payments.

Having a good score on your credit report has many financial benefits such as higher credit availability and loans at better interest rates. This can be a huge advantage over time.

You cannot legally remove accurate and timely negative information from a credit report - no matter how often you may have heard otherwise. But if you choose to dispute information you deem inaccurate or incomplete on your credit report, you have the legal right to do so. The process is simple, and best of all, you can do it on your own - for free.

The Fair Debt Collections Practices Act (FDCPA) prohibits collection agencies from engaging in unfair, disrespectful, or harassing behaviors when trying to collect payment. When collection agencies cross this line, you have recourse to hold them accountable and possibly even pursue steps to have your debt completely forgiven.