If you aren't even close, consider credit counseling. If it's hopeless, you may want to consider bankruptcy and a fresh start. Determine which course of action you will take and stick to your guns. Negotiate with creditors. Nine out of 10 creditors will renegotiate terms with you if you re having trouble paying bills.
Good candidates are gasoline companies, utility companies, hospitals and doctors.
Gasoline cards are usually not reported to credit bureaus until you re 90 days late, and the others don't generally show up on credit reports unless the bills are sent to a collection agency. Write a letter to these creditors describing your problem and requesting a reduced payment schedule. Then stick to your new schedule. Add pertinent information to your credit file. Your credit report may be damaged as much by the information that is omitted as by the negative information that is found there.