Filing bankruptcy is not something to take lightly. Most likely, if you are ready to begin the process of filing bankruptcy, you have exhausted all other avenues. The stress leading up to filing bankruptcy can be crippling.
Dealing with creditor phone calls, letters, and even potential lawsuits can take a toll on anyone. While bankruptcy has a negative connotation, it can be a light at the end of the tunnel. If you feel like you are out of options, it may be time to consult with a bankruptcy lawyer.
Your attorney will help you go over your finances and guide you through the process. The process of bankruptcy is time-consuming and requires a lot of discipline, however coming out at the end is the beginning of your new financial life. It does take time to rebuild.
By learning and acquiring tools to help you, you create the process for leading a healthy economic life. You are setting yourself up for success down the road. Here are a couple of ways you can begin to rebuild after your bankruptcy is over.
Credit Report Monitoring Service
While your credit will take a nosedive in the beginning stages of bankruptcy, often it doesn’t take quite as large a dive as you are thinking. When you are considering filing bankruptcy, you have most likely fallen behind on your payments or defaulted on loans.
A history of late payments can decimate your credit score. So after bankruptcy, it is essential to utilize a credit monitoring service so you can stay on top of your credit report. As time goes by, you will begin to see small increases in your credit score, which will let you know that you’re on the right path. If you have any hiccups along the way, this can alert you so you can adjust your behaviors to stay on the right credit path.
Additionally, many credit monitoring services offer credit score simulators. These simulators will help advise you as to what actions you can take that will have the most substantial positive impact on your credit score.
Obtain a Secured Credit Card
A secured credit card is one of the first steps you can take to building a positive credit history. With a secured card, you will make an initial deposit, usually $200 or more, that will act as your new credit card limit.
Make sure that you use the credit card regularly and pay it off in full. It is important to note that this card should not be used to live outside your means or for extras, this should be used instead of cash and paid off in full every month.
The benefit of using a secured credit card is they will report to the credit agencies and give you positive credit history. Make sure that when you choose your secured card, you pick one that reports to all major credit bureaus.
Recovering from bankruptcy can take some time. But every day you are making improvements and paving the way to a healthy financial lifestyle by making good money choices.