6 Sure Fire Ways To Get Upside Down in Debt! - (Con't.)

4. Ignore your credit report and credit score.

Ignoring your credit report is the same thing as saying that you totally trust the folks issuing your credit -  what the heck, let them run the show  -  they certainly have your best interests in mind!  WRONG!

Here's the truth of the matter.   The FTC believes that over 25% of all credit reports contain errors... that's 1 in 4.  Gather 4 friends together.. one of you has an error on their credit report.

Not only do things go wrong, but sometimes there are way past due bills you have legitimately forgotten about, maybe someone gets ahold of your credit card... Not knowing your credit value puts you at a huge disadvantage.

A very rational strategy is to get your free credit report - you are entitled by law to a free report every year.

Take a look at it, and dispute any mistakes.  Then one by one, find the items on that report that hurt you the most and go to work on them.  What you will find is that as your credit score improves, you will be able to negotiate for cheaper credit.   Move your score in the right direction, and next thing you know, you get offered a cheaper credit card.  Pay off the expensive card, and use the cheap card, and instantly you have saved money!   Hold off on major purchases like a house or a car until your score is stronger, and save more money over a long period of time.

Of course, if you don't know what your credit looks like, you are flying blind - and are easy prey to predatory lenders... Get your free credit report - its easy.  Manage your credit and start having more money available to you at the end of ever month.