Without a doubt, bankruptcy is a very trying experience for any person. Still, it can be endured and even recovered from. Here are few suggestions for ways to come back after declaring bankruptcy:
Establish a Budget – Believe it or not, this is the first step in reestablishing your financial self. For starters, you must rein in your old habits and live within your means. Once you recognize that this is the new normal, you will start to take back your financial life.
In addition, a budget will allow you to not only deal with the necessities of life but also allow you a little leeway when it comes to entertainment.
Pay Mostly with Cash – In most cases, after a bankruptcy, your credit cards will be canceled so you will have to resort to this technique anyway. Nevertheless, it is an excellent habit to encourage in the “financially challenged.” By paying with cash, you naturally fall into a routine where you will have to live well within your means.
But…Get a Secured Credit Card – There are some situations where a credit card is simply indispensable – renting a car comes immediately to mind – so you will need to establish a credit card account of some type. In your situation, this most likely means getting a secured one. The limit will be low and you will have to put up a deposit but it is essential for rebuilding your credit.
Obtain Your Credit Report – This document – actually a compilation from several companies – is the real-time barometer of your financial health. Knowing what is – and what isn’t! – on it should guide much of what you do in the future financially. It is also a great way to judge how well you are living up to your own expectations while recovering from a bankruptcy.
It is also important to realize that you are not alone. A lot of people are experiencing the same financial stress and dealing with it in one way or another.
For further information on these and other debt relief solutions, please contact us at Superior Debt Relief with any of your questions.