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Credit problems have become an epidemic in the United States, and credit repair has become a booming industry. The ease with which credit has been obtainable in the past 20 years, combined with predatory lending practices, have resulted in a situation where millions of Americans now find themselves in serious debt without having a clear path to solvency. It is not necessary, however, to turn to a credit clinic for help. Credit repair can be self-performed by anyone who has patience and discipline and is willing to take action.

The first step is to be aware of your situation. The Fair Credit Reporting Act requires that each of the three major credit bureaus, Experian, Equifax, and Trans-Union, must provide, upon request, a free credit report at least once every 12 months. You can obtain your free credit report online at annualcreditreport.com or you can request it by phone at 1-877-322-8228. Beware scams that pose as offers to provide free credit reports.

You can also request a free credit report if a company takes adverse action against you as a result of information in your credit report. Examples of adverse action are denial of credit or increase of interest rate. The request for a free copy of your credit report must be made within 60 days of notification of the adverse action taken against you.

The second step is to study your credit report closely. Make sure that all the information is accurate and that all the accounts listed are, in fact, yours. It is not uncommon to find an item that belongs to a different person with the same name.

Third, if you do find information that you believe to be inaccurate or in error, dispute it. If you order your credit report online, you can dispute information online. It is preferable, though, to dispute information in writing. That way, you can include copies of any bills, statements, or other documents that support your case. Removal of false information is a critical step in repairing your credit.

The fourth step is to create a monthly budget for your expenses. Credit repair cannot begin until the behavior that caused the credit problems has changed. Your budget must identify all your income and expenses and must set limits for expenditures. You must spend less than you take in. Include a line item for a "credit repair" expense. The value of the "credit repair" item should be as high as you can stand.

As part of your budgeting exercise, call the customer service lines for all your credit cards and finance loans. Ask for

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