So you have just filed for bankruptcy. Now what? You may feel very overwhelmed at the uncertainty of your financial situation. You have spent your whole life trying to build a great credit ranking and now you face an uphill battle.
First thing you need do is take a deep breath and realize that there is life after bankruptcy. It will be different, and sometimes more difficult, then when you first started building your credit. However, if you strategize and commit yourself to not wasting your second chance, you will find the experience very rewarding.
Here are some tips on how you can recover from filing from bankruptcy quicker and without the burden of your recent bankruptcy filing.
- Make a budget– This seems simple but making a budget will help you plan out your financial situation much easier than without it and it is essential to getting yourself back on track.This might help you realize that you need to stop spending on certain things or you may realize you have some extra cash to help pay off your bills earlier than you had imagined. Your essentials should always be: housing, food, utilities, communications, transportation and medical expenses. If you want to make a big purchase, make sure you have enough money to pay your bills first.
- Make an emergency fund – You should consider also putting money into a emergency fund. Emergencies happen: you may need to take a trip across the country to go to a funeral, your car may break down or your house might get hit by a huge storm. Always plan for emergencies.
- Pay your bills – Your first priority should always be to pay your current bills in a timely manner. If you have a hard time remembering paying your bills, set up automatic bill payments. Most utility companies will allow you to do a direct deposit payment on the day you choose.
- Get a secured credit card – Having a secured credit card will help you boost your credit score in no time. You will put money up front (usually about $500) and make normal payments on your credit card like you have always done. Ask to get your credit line raised as soon as possible. Three things to keep in mind: ask yourself if you want to stay at this bank if you were to switch to an unsecured credit card, avoid places that charge you upfront fees (some will charge you up to $200 when you first open your card), and make sure they will report your transactions to all three major credit bureaus.
- Upgrade to an unsecured card – After you have your secured card for about 12 months, ask to be upgraded to a unsecured card. But keep the same philosophy as before: do not spend money you do not have. This will land you back into bankruptcy in no time.
If you need help recovering from personal bankruptcy, contact Leslie Williams. We’ll set up a and help you start moving forward—debt-free!