Here are Dave’s Ramsey’s Seven Baby Steps To Financial Freedom.

1). Start a $1000 Emergency Fund.

Your emergency fund is for life’s unexpected events, like losing a job, a car repair, a trip to the Doctor. It’s not if these emergencies will happen, it’s when! What you’re trying to do here is to stop adding new debt to the pile while you are paying off the old. Your $1000 emergency fund is to keep you from more borrowing and break the cycle of debt!

2). Pay off all debt starting with the smallest balance first.

Yes you have a pile of credit card debt, cards with big balances, some with smaller balances, some with higher interest rates, and others with rates that aren’t too bad. Dave recommends you pay off credit card debt using the debt snowball by paying off the small balances first, regardless of the interest rate. Dave say’s “You need some quick wins in order to stay pumped up about getting out of debt”! Plus, as you pay off each smaller card, you have more money to throw at the remaining ones. Please note that step 2 is key for help with credit card debt.

3). Build your full emergency fund of 3 to 6 months of expenses in saving.

As you pay down your debt, start saving for 3 to 6 months of living expenses. Again, the goal is to break the cycle of debt and learn how to pay for everything in life with cash.

4). Invest 15% of household income into Roth IRAs and pre-tax retirement funds.

Now that the debt is gone, it’s time to look to the future.  Try to save 15% of your household income into tax saving Roth IRA or company sponsored deferred compensation plans.

5). Grow your children’s college fund.

Give your kids a great start in life with a college education.

6). Pay off your mortgage early.

By the time you are ready to retire, have that mortgage paid off.

7). Build wealth and give to charity.

Continue building wealth through the years but please do not forget to give a percentage to your favorite charities.

You may also want to check out Dave Ramsey’s Total Money Makeover book. It provides you with helpful charts and graphs to help you keep track of your debt reduction progress while following the steps in the book. When it comes to help with credit card debt, Ramsey provides the hard truth about what it takes to become debt free.

Best of luck to you while you’re paying off your credit card debt and begin building real wealth!

credit repair services

Credit report errors may include any outdated in formation of more than 7 years old, 10 years if you had a bankruptcy. Also check for names that are not you, wrong social security number, accounts that are not yours, addresses where you have never lived, and any credit inquiries that you did not authorize.

The three consumer reporting agencies, Equifax, Experian and TransUnion, have 30 days to investigate, give you a written report of what they found and a copy of any corrections made to your credit report file.

You can dispute a credit report by telephone, by mail or through the credit bureau’s website. It is easiest and best to start a dispute at the credit bureau’s website. Second best is by mail. If you dispute by phone, you would not be leaving an important trail of paperwork.

If the credit report dispute ends up unresolved, you have the right to place a 100 word statement in your credit report file explaining any information you feel is not correct. You may also use the statement to give reason for any history of late payments if you had a company layoff or if you were laid up with an illness.

You can also ask the credit bureaus to place a fraud alert in your file if you feel you may have been a victim of identity theft. Fraud alerts can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you.

Knowing how to dispute your credit report is very important in order to keep your credit file accurate and your credit score high.

I was only on the site for about 10 seconds when it hit me like a ton of bricks. This guy has ”got it”.  He is on the right track and wants to help others do the same.

His name is Adam Baker and his mantra is: Sell your crap. Pay off your debt. Do what you love.

Adam and his wife Courtney have been covered in USA Today, Psychology Today, The Art of Non-Conformity, MSN.com, CNNMoney, Fox Business, Time, The Huffington Post, The New York Times, The Dallas News, The San Francisco Chronicle, Zen Habits, SxSw 2010 Web Awards Finalist, The Art of Non-Conformity, ProBlogger, LifeHacker, Get Rich Slowly, The Simple Dollar, WiseBread, and Digg.com to name a few!

It all started in 2008, after the birth of their daughter Milligan, The Bakers decided to sell everything they owned, pay off their consumer debt, and spend a year traveling abroad as a family. The Bakers began sharing their journey publicly in early 2009 forming the community of Man Vs. Debt.

They first spent a year leading up to their trip selling all of their possessions (down to two backpacks) and paying down $18,000 in consumer debt. In June 2009, the Bakers left for what was to be a year in Australia, but quickly turned into more mobile travels through Australia, New Zealand, Thailand, and finally back to Indiana.

In sharing their ups and downs in the areas of personal finance, consumerism, clutter, travel, minimalism, and passionate entrepreneurship, Adam and Courtney realized that they weren’t alone in the desire to explore and grow. Fortunately, a community of like-minded people has emerged, contributed, and rallied together.

I posted a YouTube video of Adam giving a presentation on what freedom means to you and how you can get there. Enjoy.

You are also entitled to a free report once a year if you certify that any of the following are true:

• If it’s been 12 months since you last requested your report
• Unemployed and seeking employment
• Receiving public welfare assistance
• A victim of fraud and your file may contain inaccuracies

If you do not fall into any category allowing you to get a free report, the fees vary between bureaus and even different regional offices of the same agency. Therefore, you should check with the credit bureau before you formally request your credit report.

• Your full name. State any aliases or maiden name. Also include your middle initial.
• Current address and former addresses for the last 5 years. If you have moved in the last 6 months, provide proof of address from a utility bill or phone bill. The credit bureau may not have your current address on file as yet.
• Social security number. This must be included to process your request.
• Spouse’s name
• State whether you have been denied credit within 60 days (include a copy of the credit denial or related details.)

It only takes a couple of minutes to view and print your free credit report so there isn’t any reason not to do so.

Most Consumer Credit Counseling Services are local and have evening and weekend hours. They can usually help you in person, on the phone (1-800-388-2227) and through their NFCC website.

Consumer Credit Counseling Services act as an objective party in order to help you work through your financial issues.  They will analyze your sources of income and expenses, detail what you owe, give you an organized picture of your current financial situation, and provide options that match your resources, lifestyle and goals.

You will be given more than one possible solution from your Consumer Credit Counseling Service, some of which you may not even like very well. Your credit counselor will offer a balanced perspective of what you need to do and how long it may take to clear up your finances. They will propose a payment schedule for you to repay your debts. By voluntary agreement, you deposit funds with your credit counseling agency each month and they send those funds directly to your creditors. If any of your collectors call you, ask them to contact your NFCC counselor directly.

Going forward, seeking help from an accredited consumer credit counseling service can improve your credit report file information and raise your credit score.

Pay Down Your Debt

Decreasing your “credit availability to credit use ratio” on all revolving charge cards to under 25% of your credit limit is the easiest way to improve up your credit score. In otherwords, if you have a $10,000 credit limit on a credit card, you need to keep your balances under $2.500.  Credit scores can really take a hit if your account balances are above the 50% credit limit.

Get A Visa Secure Card

Secure cards look like any other credit card offered by your bank or credit union but the difference is you actually deposit funds into your secure card account. The good news here is that your secure card account is reported to the credit bureaus. This way having a good track record on the account will certainly help improve your credit score.

Apply For A Small Personal Loan

Using your savings as collateral on a small personal loan is a great way to get positive information going into your credit file. These are low interest loans that are paid back in months rather than years in most cases.

Use Retail Store Credit Cards

Retail cards have smaller credit limits and are pretty easy to get. If you behave and pay your bills on time or even better, payoff those balances every month, your credit score has nowhere to go but up.

Keep Your Existing Credit Accounts Open

Accounts with a long history are always better than accounts with short histories. Never close an old account when opening up a new one.

Review Your Credit Report At Least Once A Year

Start today by getting your free credit report. You need to know just what is in your credit report file before you do anything else. We reccommend that you order your credit score at the same time as well. Make sure that the information from each credit reporting agency match up. Important things to look for are wrong social security numbers, wrong addresses (current and past), unauthorized account inquiries, past employers, and any late payments.

The following Five components make up your credit score:

Paying Your Bills On Time is 35% of your credit score number. It is the most important factor. If you have a history of late payments, your credit score will suffer.

Amount And Type Of Debt makes up another 30% of your credit score. Here is better to have high credit limits and a low balance. Revolving credit weighs more than a mortage or car loan because it is open credit. With revolving credit you are always borrowing and paying back over and over.

Length Of Credit History is worth 10% of your credit score. The longer you have the account the better, whether you use it or not. Closing an old department store credit card would actully lower your credit score.

Variety Of Credit Accounts is 10% of your credit score. If all you have are credit cards, your score will be lower. But if you have a couple credit cards, a car loan, a student loan and a mortage, your credit score would come in much higher.

The Number Of Accounts Recently Opened makes up the last 10% of your total credit score. If in the last six months you have been applying for every exciting credit card offer that comes in the mail, your credit score will most certainly take a nose dive.

Keep in mind that the credit score number you saw last year, or even last month for that matter, was a snapshot of your credit file at that moment in time. Credit scores are fluid and can change anytime your credit report file is updated with new information.

You may get a copy of your free credit report at any or all of the following three credit bureaus:

Equifax – 800-685-1111; www.equifax.com
Experian – 888-397-3742; www.experian.com
TransUnion – 800-888-4213; www.transunion.com

The easiest way to get your free credit report is to call 877-322-8228 or visit www.annualcreditreport.com.

If you are also looking for a copy of your credit score, you should go to either www.myfico.com or www.equifax.com. Only these two websites will give you the actual credit score number that lenders use. The other sites would give you only their estimate of your credit score.

When ordering your free credit report, you will need to have the following information at hand:

Your social security number
Your former addresses and dates you lived there
Your credit card account numbers
Your employment history

If you find errors in your credit report, send dispute letters to the three major credit bureaus. The credit bureaus have 30 days by law to investigate and make corrections.

The value of maintaining a clean credit report and having a high credit score could be worth thousands of dollars to you over the course of a loan. People with the best credit get lower interest rates and even preference for employment opportunities.

Get Your Free Credit Report

Start today by getting your free credit report. You need to know just what is in your credit report file before you do anything else. We reccommend that you order your credit score at the same time as well. Make sure that the information from each credit reporting agency match up. Important things to look for are wrong social security numbers, wrong addresses (current and past), unauthorized account inquiries, past employers, and any late payments.

Fix Credit Report Errors

If you find errors in your credit report, send dispute letters to the three major credit bureaus. The credit bureaus have 30 days by law to investigate and make any corrections.

Stay On The Right Path

Always make your payments on time and keep your debt balances below 50% of your credit limit on revolving accounts. A 30% or less debt balance will quickly raise your credit score.

Review Credit Report Every Four Months

If you still have errors in your credit report file four months from now, negotiate to have them corrected or ask them to add a personal statement from you explaining your side of the story.

Keep in mind that the advantage of ordering your credit reports from all three credit bureaus today is that you will be able to compare them. But then you would not be eligible for another free credit report for another 12 months. The advantage of ordering just one now and others later, one credit report every four months for example, is that you can keep track of any changes or new information that may appear in your credit report file. So if you request yours from only one company today you can still request from the other two companies at a later date. That way you will have access to your updated credit report every four months throughout the year.

Credit Monitoring Is Important

Monitor your credit file with one of the many credit monitoring services available. A credit monitoring service will quickly alert you of any changes to your credit file and will help guard against credit fraud.

Once you feel you’re on the right path of fixing your credit, you need to keep your credit report file clean and your credit score high if you want those lower interest rates offered by lenders.

Your credit report provides you with information that is in your credit file maintained by the consumer reporting companies which could be given in a report about you to a lender. A credit report lists the full detail on all your credit accounts.

Your credit score is a number evaluated from many different types of information in your credit file. It is used by a lender to help them determine whether you might qualify for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending you money or providing them with a service. In other words, the likelihood that you would make your payments on time in the future. The higher your credit score, the less risk you represent to a lender.

By paying your bills on time, you can maintain a good credit rating and may qualify for lower interest rates whenever you decide to borrow money. Never wait until the last day to pay those reoccurring bills. You will you incur nasty late-payment fees and trigger higher interest costs. Payment history is one of the biggest factors in determining your credit score.

A single late payment over a long period of time might not cause any damage to your credit report, but making a habit of missing payments can result in real damage to your credit file and credit score.

Lenders tend look at your recent payment history, so be really careful with those payments in the months before you apply for any loan or credit card.

Learn more about how to improve your credit score and get those cheap interest rates you deserve.