Often, I hear how people vehemently deny that they are spend thrifts and all their money go to necessities. I think they have to evaluate their necessities then. The truth is, we live in a very blessed country filled with opportunity. Why is it that I see some families “get it” and avoid bad credit like the plague while other families are completely oblivious?

A case in point: when college kids go off to school they are bombarded by credit card applications. In theory, I have no problem with this. You do need to establish a credit report for the future. However, kids with a basic financial foundation know this is not an all access credit card to party. They should have basic money management fundamentals to know how to pay credit card fees on time to avoid having to repair credit debt in the future. After all, in all likelihood, they will have to pay for their student loans and you don’t want bad consumer credit debt to be piled on as well.

And then right after college with new degrees, the new graduates are filled with hope of making fortunes with their piece of paper. Here’s a news flash. Education does not guarantee a high paying job. But, the story continues in that they move back home in search of a job. They continue to wait and wait while living off credit cards never thinking that one day that they will need to repair credit debt. The good news is that the dream job comes. The young adult takes an apartment as a sign of independence. He even gets a new car to commute to work. Things go good for awhile and he lives it up with furnishings for the apartment and a brand new plasma tv. You know where this story is going… Disaster strikes and layoffs happen to the company. He’s out of a job and he has no emergency fund saved but he’s got bills to pay and he starts using his credit cards to get out of jams. After all, he’s using his credit cards for necessities. Before he knows it, he’s got bad credit debt that he needs to repair.

The scenario just described is not uncommon. Often times, things are rolling along merrily and then “life” happens. The problem is that once it starts, bad consumer credit can become a nightmare that you can’t get out of. That is why a solid nest egg must be established early on in an emergency fund. These situations must be nipped in the bud before your financial file gets damaged and you need to clean up credit report.

My views on erasing bad credit is not going to be popular.  It’s going to be harsh and it’s a reality check.  I believe that’s what is most going to jolt you into getting your financial situation in order.

You might believe that I am hiding behind a finance blog with a privileged education and a wealthy upbringing.  That is not the case at all.  Education does not equal being fiscally responsible and being wealthy does not mean you know how to keep it.   No, where I come from is just good old fashion common sense in repairing credit debt.  I firmly believe that everyone can attain financial security.

So how do you erase bad credit?  Now, I’m talking strictly about consumer debt and here’s where the common sense comes in.  If you know you don’t have money in the bank, don’t use credit cards!  Ta-da!  Simple isn’t it?

Seriously, it is.

Oh, I can hear the excuses now that I need to use the credit card for food, car repairs to go to work, etc.  You would be the best judge but I want you to examine the need seriously.  Take the bus, eat some peanut butter and jelly sandwiches.  Suffer a little; it builds character.  You have to ask yourself is the sacrifice worth erasing bad credit?  Even ask yourself does the job make you enough money to even get the car repairs.  If not, look for another job to help repair your bad credit.

Again, I can understand that this advice might come off harsh but I come from a place where I too had to face financial obstacles.  But this is a time to learn how to get out of debt, examine your finances and put a stop to poor financial decisions to clean up credit report.