Life After Bankruptcy — How to Get Back on Track Financially
Declaring bankruptcy is never a fun process, but it is often the most responsible option when it comes to resolving outstanding debt. A bankruptcy will remain on your credit report for ten years. Initially, your credit score will be lower than you’d like it to be, but with a bit of diligence and discipline, you can get back on track financially and start rebuilding your reputation and your good credit.
Rein-in your lifestyle
Take the time to learn how to manage your finances. Create a budget and then keep track of how well you are sticking to it from week to week. If you have a smart phone, there are an endless number of apps for managing your budget and tracking weekly expenditures. Keeping a budget is a powerful way to achieve your financial goals because you’ll know, to the penny, where your money is going. You have survived bankruptcy. Now take a few, simple steps to make the most of being debt-free.
Begin rebuilding your credit
You can begin to rebuild your credit by getting a secured credit card, which is a financial tool that allows you to have a line of credit with the money in the bank to serve as collateral for the credit limit.
Review your credit report for accuracy. Contact the credit reporting agencies when you find errors that will have an impact on your score and have them corrected. Live within your credit limits, and always pay all of your bills on time.
After a while, take out a car loan or open a line of credit with a monthly payment that fits within your budget. Make every payment on time without exception. As you show a record of a year of on-time payments, you will notice that your credit score will gradually improve, and you will begin to see more favorable interest rates.
Start saving your money
No matter how small the amount of your deposits, start contributing to a savings account every pay period. Go to your payroll clerk and have a certain amount of money from your paycheck diverted directly to your savings account, so it’s a hands-free transaction. If your company has a retirement savings program, contribute as much as you can. As Albert Einstein said, “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” Take advantage of the time value of money to begin to build a secure financial foundation.
After surviving bankruptcy, a debt-free future can be in your grasp. Contact DebtStoppers today at: 312-913-0630 to schedule a free personal debt consultation with one of our bankruptcy attorneys. Together, we can help you break free from your debt burden so you can move forward with your life.