Most consumers think that it is impossible to get their finances back on order after bankruptcy. After all, which creditor/lender will like to give them quickloans after finding bankruptcy listed on their credit reports? However, this is absolutely an age old and wrong concept. It is possible for the consumers rearrange their finances even after getting bankruptcy discharge. Read along to get acquainted with 6 ways which can help you bounce back from bankruptcy with time.
Ways to recover from bankruptcy
Here are the 6 simple ways that can help you get back on your financial track after bankruptcy. Even Carlos Hank Rhon has also suggested them as the most beneficial ones to bring into practice.
1. Look at your credit report: Order a free copy of your credit report after 2 months of getting bankruptcy discharge. You may find some mistakes on your credit report. However, this does not imply that you have to get help from a professional credit repair agency for rectifying the errors. These agencies can't wipe out the negative accurate information from your credit report unless they are above 7 years old or bankruptcies which are more than 10 years old. So, instead of hiring agencies, you should try to repair your credit on your own. Dispute the wrong information with the credit bureaus. Under Fair Credit Reporting Act, the credit bureaus have to investigate the dispute without charging any fee.
2. Rebuild your savings: You should start rebuilding your savings soon after getting bankruptcy discharge. This way you won't have to depend on your family members, relatives, or friends for money in emergency situations. In addition, you won't need to take out a pay day loans to meet a temporary emergency crisis and get into eternal debt afterwards.
3. Live on a budget: You need to set up a realistic financial plan and a budget to get your finances back in order after bankruptcy. Create a budget as per your financial needs. If required, change your lifestyle to meet your budget. This may mean that you have to get rid of your mobile phones, newspapers, etc. You'll have to prioritize your financial needs and spend accordingly.
4. Establish good credit: You can establish good credit by taking out a secured credit card. You can get a secured credit card from your nearby bank. You will have to deposit a certain amount of money in the bank. The bank will issue a card with a credit limit of the similar amount. The bank will refund the money at the time of account closing.
5. Pay the bills within deadlines: Make sure you pay the bills on time. This will help you rebuild your credit especially after bankruptcy. Set up automated payment system in your bank account for the payment of bills within the due date. This will help you avoid paying late fees on your bills.
6. Don't repeat the same mistakes: You should try to avoid committing the same mistakes that lead you to bankruptcy in the first place. If you got into financial crisis due to mismanagement of money and credit cards, then take steps to change your spending habits. In case, you entered into financial troubles due to the recent economic crisis, then make sure you have an emergency fund to meet the unforeseen expenditures.
Last but not the least, you should educate your family members about the value of money. Share your experience with your spouse and kids. This way, your family members will handle finances responsibly in future.