You have emerged from bankruptcy, mildly scathed but you know that with the guidance of your attorney, you are on a path that represents a new financial beginning.
But you realize the need to change your financial lifestyle in the way you spend money and how you make decisions pertaining to money. Old habits may be difficult to break, but you do not have much of a choice now, lest you fall back into another bankruptcy scenario.
Establish a budget, check credit report
Certain steps may help you in your post-bankruptcy adjustment as you seek to improve your credit rating as long as you take a disciplined approach. Here are some helpful things to consider:
- Know where you spend your money and establish a budget: Keep detailed records of your expenses. Doing so allows you to know where your money went, and you may see some surprising results. This may help you determine which expenses to reduce or eliminate.
- Pay your bills on time: Doing so will help you avoid having to pay late fees, improve your credit score and even reduce stress.
- Build an emergency fund: Open up a savings account and gradually deposit money into it. If possible, try to build it up to three months of living expenses to help you pay for any unexpected expenses.
- Obtain a secured credit card: Use it only for expenses that you know you can repay entirely at the end of the month. This card is meant for people who get turned down for a traditional credit card due to poor or lack of credit.
- Regularly check your credit report: You must make sure that debts discharged in your bankruptcy do not appear on your credit report. Look for other errors as well.
Take this advice seriously. Gradually, each step should help you.
Make the successful transition
Post-bankruptcy represents the beginning of a new financial life for you. Embrace your new attitude toward money, finances and spending. You are on your way to a successful transition.