Before we get into this fascinating and simple way you can have great credit even after what you've been through. I want you to do something. Join my high quality list and I'll email you an amazing 25 page free report that has a lot about how to get good credit and avoid bankruptcy, along with valuable emails on how to avoid creditors (legally and ethically, so they don't bother you), what a bankruptcy will and won't do for you,  and much more.

If you have crushing debts, it is tempting to either go to these "credit counselors' or file bankruptcy. But I caution you on both.

First, let's discuss credit counselors. All they do is take your money, and send it off to the banks. But they keep, say, 10% as their "fair share" and they don't do anything, really.

But if you negotiate with the credit card banks directly, you can accomplish two things. You can get your payments reduced. And you can get your negative credit reversed so that it becomes neutral if not positive.

Yes, that's right. If you know what you are doing, and it isn't hard, you can get your payments cut way back. And you can start raising your credit score.

I know what you're thinking…sounds impossible, right?

You can slash your payments — without bankruptcy

Well, it is quite possible and it's done every day. The banks and credit card companies respond to clear offers made by people who have the insider information on what they can and cannot get the banks to agree to. If you have that information, I assure you it's easy. You can get most of your creditors to agree to reduced interest rates, longer payment terms, and even charging off some or most of what you owe.

What's more, you can do this outside of bankruptcy. Bankruptcy can ruin your credit and takes several years to recover from. And with the new bankruptcy laws, you will end up with a five year payback plan through bankruptcy anyway. You no longer get to charge off your debts and cleanly get a discharge, in most cases. You should always get advice from a lawyer but in most cases the new law only allows for you to pay your debts over 3 or 5 years, through a chapter 13.

Why your credit card companies will give you a better deal

And you know what? Your credit cards and banks and medical bills…they will get *less* if you file bankruptcy than if you settle your debts yourself. So that is why they want to play ball with you if you simply know what to say to them. You can get them to cut interest rates, give you longer to pay, and say nice things about you to the credit bureaus. No credit counselor will do that. And bankruptcy won't do that either.

So now that you have good credit again, or are on the way, let's get you a place to live. Since the same bad housing market for sellers is a blessing for buyers, why not buy a place with little or no money down?

Click here to learn how to buy a house with no money down even if you have terrible credit