How To Rebuild Your Credit After Bankruptcy
Far too many people think about bankruptcy as being the end of the road. The truth is that bankruptcy provides you with a fresh opportunity to rebuild your finances and become someone who spends and saves responsibly.
We know that bankruptcy is not the end of your journey; we are committed to helping you avoid any future financial troubles. Rebuilding credit is not a short, easy process, but it can be extremely rewarding, allowing you to buy a home or car or obtain financial aid for school.
As soon as you file for bankruptcy, you should start thinking about taking the following steps:
1. Keep A Budget
Keeping track of your monthly expenses versus your income can help you avoid unnecessary spending. Making some sacrifices will allow you to have money left over for an emergency.
2. Start A Savings Plan
Placing some of the money you save through budgeting into a savings account or a safe investment can put you on the path to financial security. That money can be there for emergencies so you won’t have to take out a high-interest loan.
3. Review Your Credit Report Regularly
It is much easier to view your credit report and credit score now than it was in the past. This data can show you if you have any debts that you were unaware of holding down your score or if you are a victim of identity theft. After you receive your bankruptcy discharge, you can also watch your score improve over the years with the on-time payment of bills.
4. Open A New Card
This step may not make sense for some, especially if credit card debt got you into trouble in the first place. However, opening one credit card and paying it off on time each month is a useful tool in rebuilding your credit. Using your new budgeting skills, you should never put more on this card than you can afford to pay off every month. This will prevent high interest payments from building up.
Get Help From Experienced Lawyers Today
At the Law Office of Rich & Rich, attorneys Charles Rich and Ryan Rich personally guide clients like you through the bankruptcy process, setting them on the path to success. To learn more about life after bankruptcy, schedule a free, confidential consultation at our office in Memphis, Tennessee, today, either via email or by calling 901-201-6163 or 866-935-6740.