Where should you begin? Say you noticed an ad in the newspaper from a company guaranteeing results, but you're betting that it's just another come-on. You're probably right.

So what do you need to do in order to sort out fact from fiction: First, you need to survey the situation to gauge where you stand. It might not be a pretty place, but at least you'll know what you're facing! Start by obtaining a copy of your credit report for free at: www.annualcreditreport.com.

Review the file to be sure all information was reported accurately. Accounts reporting satisfactory payment histories might not be of great concern at this point, but you want to be sure that the reported balance on each was no higher than the actual balance. (The percentage of credit line actually in use affects your credit score. Lower balances = higher scores. In the trade, this is called the "percentage of utilization").

If accounts were reported with inaccurate or out of date information, dispute them, especially if there were accounts reported in your name that weren't actually yours.

If accounts were reported as charged-off, late, in collection or with some other incorrect or harmful information that was more than seven years old, dispute them too. Doing so will likely result in having the derogatory information removed, but remember, just because information is removed doesn't mean you won't still be in debt.

If the debt is legitimate, you need to find a way to satisfy it. Otherwise it might crop up again and at the worst possible time, like when you're applying for a new job with an employer that uses credit checks. Make a list of every unpaid debt, then carefully develop budgets every month to identify all spending you planned during the 30-day period covered in the budget. Be careful to include every conceivable expense. Also include all expected income. Then compare the total income to total expenses to see if you anticipated a deficit or surplus.

This difference, also known as "cash flow," tells you exactly where you stand for that particular month. If you have a deficit, or "negative cash flow," you need to lower expenses and increase income somehow to get to the break-even point. If you have a surplus, or "positive cash-flow," you can use the extra money to meet your financial objectives. In that case, it might be paying off a debt.

Follow your budget during the month to be sure that your money is used wisely and as you planned when you set your budget. This should result in having sufficient cash to pay everything, including some of those old debts that you want to get rid of.

You can call a creditor and pay a debt in full using a payment method that's easily tracked (your checking account, a certified check or official bank check). Be sure not to pay using cash or a money order because it's difficult to prove payment afterward.

To be doubly certain, obtain a receipt showing that you paid-in-full, and file it with your important papers. Then strike the debt from your list and begin to focus on the next one. Tackle the debts with the smallest balance first so that you can quickly eliminate as many as possible.

You'll do this every month for as long as it takes to satisfy all of your unpaid debts. Every 90 days, you'll get another copy of your credit report. If any of your newly paid debts are still reported as unpaid, dispute them to have the information updated.

As accounts are updated appropriately, you'll see your credit score rise. You'll also see an increased number of solicitations for credit cards in your mailbox, but they're likely be different from the ones you received before improving your credit. You'll notice that the terms are more favorable, and maybe, that some include zero interest introductory rates that you might actually qualify for.

You'll also be tempted to open one of these accounts to consolidate your higher interest debts. If approved, you can do just that. The savings you enjoyed with the lower rates might just help you to accelerate your debt elimination efforts. As your debt declines further, you'll see your credit score really begin to soar! This will help you apply for loans, mortgages, insurance and jobs knowing with absolute certainty, that your credit won't hold you back.

Brian Kilroy is a FWW supporter and retired Vice President of MBNA America Bank, N.A. He directed the Financial Advisory Service, an employee assistance, credit education and lending unit servicing MBNA employees worldwide.