Starting off, I will assume you have read my prior articles on obtaining your credit report and have obtained the three copies from the major credit bureaus.

If you have not, a sources to aid in this process are available at: www.HowtoCleanUpYourCredit.net

Now, I want to be clear about the 'credit clean up' process. You will be paying and working with creditors to properly and legally settle the debts on your account. That is the point - credit was given, you had the use and enjoyment of the privilege as well as the results: products and/or services purchased.

Now, remember, you don't get what you deserve, you get what you negotiate. So we want to write down a list. The list will be pretty simple: layout all of the creditors names, addresses, phone numbers and amounts due.

For this articles discussion regarding the items on your credit report you need to carefully go through each of them with the premise - How easily can I negotiate these items.

Example - if you feel the evidence they have on the amount due is weak, not readily available or you actually have proof of non compliance on an agreement, contract, service not delivered, quality of product issues and so forth you then have some leverage.

I myself prefer to write letters. I tend to ignore counter letters, however there may be some counter issues that you'll absolutely have to address.

Here is the strategy: You really get in trouble when you don't pay, that is why you're reading this. You don't have to necessarily pay the whole amount, generally speaking, possibly because you can't at this point. So now, I like to find the reasonable amount (usually 50% or greater) that your creditor would be willing to settle for. Amounts lower than 50% might be realizable, however, if the amount is quite large, you may be looking at creditor lawsuit down the road.

So now, we have the 'settlement amount'. Write a letter outlining the amount, what the debt was for, what you offer as final payment on account and further, you really need to back this up with some kind of 'evidence' This will help 'sell' your case to the creditor.

Please bear in mind, you really need to have a very tight case. If you do not, look to settle amounts higher than 50% and further - if you have to break it up into payments, all the better. Send them the letter. Send them the check. Outline your payment plan. Tell them why - you're broke, you're hurting financially, you've lost your job. None of this actually has to be an actual provable fact, however, let's try not to defraud our creditors please. When you set up a payment plan like this you need to require written confirmation of their acceptance of this offer as of the first payment. This NEEDS to be written on the check (from the special account you setup to handle this - with just enough money in it - please take note). When the letter is receive (certified for the first one if necessary), the check cashed. A cancelled copy in your hand with the certified mailing. You're in the game.

You'll want to wait and see what they say after the first payment, however, if the terms were clear, simple and written on the cancelled check they deposited you are in great legal shape here.

For the single payment 'final payment on account' plan, you simply write this on the check, send it with the letter and see if they deposit it.

Please be clearly aware - if you send them a check from your checking account they now have your checking account

number. So you'll really want to use an account that is not even at your main bank - just for safety.

I do not like money orders. It's like sending cash in some ways. I would use money order - KEEP COPIES - for full payment, agreed with over the phone and in writing type settlements.

There is a lot more to cover, but this should give you an idea of the process for managing and settling your debts with your creditors.