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There are many reasons why someone can end up having bad credit, such as unemployment, investments gone wrong, or medical expenses. Millions of Americans fell into a poor credit situation during the recent recession and are still digging themselves out of this financial hole.

Though their urge may be to stop using credit, this is exactly what they should avoid doing.

Melinda Opperman serves as senior vice president of community outreach and industry relations with nonprofit credit counseling agency Springboard. She says that using credit is necessary in order to rebuild credit and improving the credit score is essential to future financial success. Therefore, the credit cards should not be thrown in the trash but instead kept in the wallet.

To begin rebuilding credit, several steps should be followed. First, it is necessary to develop a budget and a repayment plan for the debt. Consumers should avoid paying only minimum credit card payments and instead focus on paying down the debt each month.

Debt payments should take precedence over other expenses that are considered more desirable.

The first target in the debt repayment plan should be high interest credit cards. If the credit card debt features default penalty interest, contact the card issuer to negotiate a lower rate. The card company should be willing to work with those in debt in order to avoid default.

If a default has already occurred for this debt or another loan, individuals should take positive countermeasures, like making regular payments on other accounts.

Payday loans and cash advances are two things that those in debt should avoid taking during attempts to make bill payments. These will usually only worsen the financial situation. Instead, expenses for nonessential items should be reduced and the individuals should focus on paying credit card bills on time and making more than the minimum monthly payments.