How do I unprotect confidential word or excel document if I do not
have a password? The document is locked and I cannot make any changes
even if I save it somewhere else. Some sites would do that for me if I
send the document away but as the document is confidential I cannot do
that. So basicaly I need universal password or some sort of way to
unlock the document myself!

Are you looking to by a product like the Advanced Office Password
Recovery by Elcomsoft or are you looking for anotehr type of solution?

I am looking at another preferably free solution.

For word documents...
Export (or save)your document as an html or rtf document.  Then open
it, and resave it as .doc file.   This will strip the password
protection from it.
As for Excel files, I haven't tried it, but maybe it will work there
also.  I wouldn't be surprised, because uSoft protection schemes are
so weak..

Easiest way is to copy the word document contents, paste into a new
file and save it.

With Excel you have to copy the cells from each worksheet onto new
worksheets in a new workbook. In Excel the 'locked' and 'protected'
attributes of the cells only take effect if the worksheet or workbook
are locked / protected.

There are also password removers for Excel and Word.

Excel passwords can be used by downloading this program

Excel Password Remover
http://www.straxx.com/excel/password.html

It is a free download and i found it by searching
://www.google.com.au/search?hl=en&q=download+for+removal+of+excel+passwords&btnG=Google+Search&meta=

For word you can copy all text.. ecc in other program like word pad
than re-copy back to word...