Anything that brings about automation is definitely simpler than the same task done manually. So is it safe to assume that automation is always a good choice? Let's look at it in the context of credit repair.

When you run into troubled waters with your credit report you will usually consider two choices – (1) take steps to repair your credit yourself, and (2) refer your problem to a credit repair agency.

1. Take steps to repair your credit yourself – when you make this choice, you will need to educate yourself on the various aspects of credit repair. While there is a lot of advice on the Internet about self-credit repair, rest assured this is far from being easy and smooth. Most people become fed up with the process and feel that the average $50-100/month that the average credit repair agency charges for their services, is a much better choice.
   
   Nevertheless, for those who want to do it themselves there is a new help at hand – credit repair software. This is something that has many things automated, such as credit score simulation that helps you understand how it's calculated, generation of dispute letters, automatic tracking, negotiating terms with creditors and so on.

1. Refer your problem to a credit repair agency – when and if you feel that you do not have the time to learn all that it takes to repair your own credit, you can always go to a credit repair agency. These, for a reasonable fee, will take on the task of bringing you step by step out of your poor credit. These agencies too, use credit repair software – in order to enhance their effectiveness and accuracy while reducing the redundancy of the process.

Is there any difference in how the credit repair software is used in the above two instances? When a person uses the software, he or she will depend heavily on its automated processing without really understanding what it does and how it does it. Therefore, without adequate preparation and knowledge the software is not really as useful as it should be.

On the other hand when an agency uses the credit repair software it knows what it should do and what needs to be customized for best results. This is why the software in their hands seems to work much better than with uninitiated individuals. The agencies often use it to improve their speed and accuracy of follow up – more as a tool; while individuals use it to drive their intervention.

From the above it's easy to deduce that the question is not actually whether using the credit repair software is a good choice; rather the question should be how this software can be used best. Whether at the individual or agency level, you cannot benefit from this software until and unless you have mastered the process of credit repair. When used as a tool, this becomes a formidable advantage in your hands; otherwise it's just generalized automated processing software.

The credit repair industry is one such place where customization is a primary factor – and therefore, without adequate wisdom and experience in applying the credit repair software, the results will be quite disappointing. 

Is it possible to avoid the debt trap? Yes! – follow these simple steps and stay out of trouble.

1. It's possible to live within your means – believe it! Don't ever give yourself the excuse that there is not enough money. Wants expand according to your income – so the wise curtail their needs according to the income; not the other way round.

Do not allow yourself to pine for what you don't have; instead stay content with what you have. This doesn't mean you should not dream big, or be ambitious about your life’s achievement; rather that you should not allow these dreams to kill the possibility of achieving success.

2. Plug all venues that drain away your money. Very often little things you spend on add to a great amount at the end of the month. Calculate how much you spend on your cigarettes, cappuccino, snacking on fast food, etc. Cut as much as you can from frivolous expenses.

3. Abolish impulsive shopping. How many times have you seen something you loved, bought it, and then stored it away? Look around your home and you'll realize how many things are bought impulsively – yet they don't have any real value in your home or life.

Money wasted. When you want to buy something on impulse, stop! Leave the shop and wait for 48 hours. If you still want it, go and buy it; but chances are that you'll have outgrown the weakness you felt for it initially.

4. Insure and live safely. Do not cut corners in regard to insurance. Ensure that you have adequate medical insurance, auto insurance, home insurance, and so on. Take the advice of a financial authority and make certain you're adequately insured. Money spent on the right insurance is an investment toward a safe and carefree tomorrow.

5. Increase your income. As said earlier, you need not stop dreaming of growing big. On the contrary, you should continuously try to generate more wealth so you will be as comfortable financially as you envisaged.

Find ways to earn more by launching a home business, turning a hobby into an extra income, freelancing, and so on. While looking for ways to increase your income, ensure that you do not compromise your health or time spent with family. Seek occupations that give you both pleasure and profit.

6. Save and invest. Most people save and feel safe. What they actually do is kill their money as it stops growing. If you want to make the most out of your savings, you need to find ways to invest so that it grows at the highest possible rate. Once again, it's wise to consult a financial professional in this aspect.

7. Use credit cards very carefully. Credit cards are a wonderful boon when used properly; here "properly" means that you should be able to pay the bill in full before the due date. In this way, you enjoy a credit of about 45 days free of cost. When you pay the minimum due or part of the bill, you've started walking the pathway that leads to debt, because credit cards providers charge 2% - 3% compound interest on the outstanding balance. Check out how much that is per year!