You're the dismayed owner of a bad credit history: the

You're the dismayed owner of a bad credit history: the truth about credit repair

While our government has furnished billions of dollars to bail out banks and corporate giants, you and I are left in the dust. The banks and ailing corporations are now doing just fine, thank you. Corporate takeovers and bankruptcies are now de rigeur. The bottom line is that we taxpayers are left holding the bag, being forced to pay off these irresponsible debts for generations to come.

When you examine your personal budget, there may not be a whole lot of room left to satisfy your obligations. A missed or late payment here and there soon snowballs in to a bad credit history. No one is going to come to your aid you're just stuck with a bunch of penalties in the form of late fees, additional interest, a higher APR and a bad credit rating. So what's the solution? How do you dig your way out?

Here, we show you some practical and effective ways to improve your credit rating without getting further into debt and without engaging the services of the bad credit lenders. No matter what your situation may be, take a look at these tips to get your financial life back on track. Just as you acquired a bad credit history, you can restore a good credit standing.

Your first step in tackling the bad credit history problem is to get a copy of your current credit report. By law, you are entitled to one free credit report each year. Look it over and determine that every item listed belongs to you. Identity theft is so commonplace now. If you find debts listed that are not yours, address them immediately. You are allowed to insert a statement in your credit report, disputing debts which don't belong to you. The creditor must provide proof of the debt within 30 days. If they cannot, the alleged debt must be wiped off your credit history.

OK. After you've determined what debts are yours and which are not, contact a non-profit credit counseling organization. These non profits charge a nominal fee for their services and are effective professionals who know how to clean up a bad credit history profile. They know the ropes and have the connections with creditors to work out a payment plan you can manage, often with reduced interest rates. The credit counseling service will help you create a strict budget whereby you can fulfill your monthly needs for food, clothing, transportation costs and shelter, while still making that consolidated monthly payment. If the credit counselor does not suggest you cut up your current credit cards, you should do so yourself. With an adjusted, manageable budget, you don't want to incur any new debt!

Depending on your level of debt, it may take 18-36 months to leave your bad credit history behind and begin building a good credit rating. When you once again start applying for credit, start on a small scale, with retail store credit cards and a gas credit card. Never max out the cards and pay them on a timely basis. Your new credit report will demonstrate your diligent and responsible efforts and make it likely that other creditors will consider you credit worthy.

Once you've pulled yourself out of this financial black hole, use what you've learned to keep your credit good. It takes a long time to restore a good credit rating. Leave that bad credit history in the past, never to be revisited!