Set Goals.
I know what you're thinking. Sounds too simple doesn't it? Big deal. How's that going to really help me? Well, sports psychologists have known for a long time that visualization is a key ingredient in training a world-class athlete. The athlete has to "see" himself winning. You have to "see" yourself with less debt and a better lifestyle. What do you want when you repair your bad credit? A house? A car? Family vacation? If you immediately thought of something you wanted when you read that question then you have a goal. If you didn't, think about it for a moment and believe me, you will find a goal even if it's as simple as having peace of mind.

Put Your Goal In Front of You.
I mean that literally. If your goal is to take a vacation to a tropical paradise, then you need to put that goal in front of you. For example, if your shopping list was written out on a page from a magazine that featured swaying palms and a brilliant sunset, do you think you would be less likely to buy extra stuff that you don't really need? Of course you would!

How about taping a picture of your goal to your steering wheel? That might make you drive right by those restaurants and go home to cook a nutritious meal that doesn't cost anywhere near as much! And what about keeping a written statement of your goal on the front of your refrigerator, by the TV remote and next to your toothbrush? If you try these techniques, you will "see" your goal. You will spend less. The less you spend, the more cash you have to pay off bad debts.

Think Twice, Spend Once.
Yes, you need a washing machine because yours just went on the blitz. You run to the nearest appliance store and the sales clerk comes up with twenty reasons why machine "A" (the more costly one) is better than machine "B" (which costs considerably less). Two things. First, if you must have a NEW machine, leave the store. Go home and think about it for a day. In most instances, the urge to buy will have receded a bit and you may find that the less expensive washer fits your needs perfectly. Or better yet, when you get home look through the classified ads or in the phone book for used appliances.

Rebuild your credit.
Now that you are saving a little extra each month you are hopefully using that cash to rehabilitate your bad credit. One way to rebuild bad credit is to use a credit card designed specifically for bad credit. Orchard Bank® credit cards may secured or unsecured. If your credit is a little below average you may be offered an unsecured card. But if your credit is poor you may be offered the secured card. Secured cards require a savings account that backs up any purchases that you make. After you make timely payments and stay within your spending limits you will be able to get a credit card with more lucrative interest rate and better terms. The secured savings account is always yours. It's there in case you default on payments-- in that case the card provider will deducts any amounts owed from the savings account.

If your credit is very badly damaged you still have options. You may still get a "stored value" MasterCard® that really isn't a credit card. You "load" it with a cash deposit and then spend up to the remaining balance. Reload it, and use it again. But this card is a good alternative because it is fully acceptable everywhere that MasterCard® "credit" cards are honored. There are no credit checks.