Six Steps To Restoring Your Credit 

Start Using Cash

Stop using credit until you’ve got your financial house in order.

By handing over cold hard cash for every purchase it’s easier to keep track of how much you’re spending on a daily basis.

If you struggle with self-control, try putting your credit cards in a container of water and storing them in the freezer. "If you’re tempted to use them you have to wait until it melts and hopefully by that time the impulse is gone," says Stenstrom.

If you still have trouble saying no, cut them up, but don’t close the accounts. "If you close them and you have a good payment history you’ll loose that," she says.

Create A Budget

It’s good advice for anyone, but for those who are falling behind on their bills, the value of having a budget cannot be overstated.

"If you know what it costs you to live, it’s easier to cut back here and there," says Stenstrom.

There are plenty of ways to find more money in your budget to pay off debt and clean up your credit.

Stop paying more on your cell phone for text service.  Drop cable TV. Take lunch to work and print coupons for your favorite products off the Internet.

"If you can’t afford a babysitter, try trading off nights of babysitting with another couple or have your friends over for a pot luck dinner instead," she says. "Get a second job if you have to."

Remember, a poor credit rating may hamper your ability to secure low-cost loans, but it isn’t set in stone.

By putting yourself on a strict financial diet, eliminating credit card debt and making home and auto payments on time, you will not only raise your credit score considerably, but you’ll reduce the amount of interest you pay every month – money you can devote to an emergency fund to ensure you never have to worry about late payments again.