How to Ensure a Better Financial Life after Bankruptcy?

Just because you have become bankrupt, it doesn’t mean it is the end of world. If you follow the right approach, you can still live a decent financial life after bankruptcy. It is true that the bankruptcy record is going to stay on your credit report for the next ten years, but if you are consistent in your efforts, your financial life will keep on becoming much more enjoyable as time passes. Whatever strategies you implement in this direction, make sure it reflects one thing – you have learnt from your mistakes. Following are some suggestions, which if you follow thoroughly can make the financial road much easier for you.

Develop a Reasonable Budget and Stick to It

When you take a loan, you seem to be excited at the thought of getting more money or getting a home or a car. You even seem to be confident that you will make the repayment in a timely manner without making defaults. But, as time passes, you make certain mistakes, which causes financial troubles and you start missing your monthly payments. This results in the accumulation of debt, which eventually puts you on the road to bankruptcy. It is only after a very long time when things become put of your control that you realize that the root cause of all your current financial hardships is the lack of budgeting. So, if you want to regain control of your finances and improve your financial life after bankruptcy, the first thing you have to do is to prepare a reasonable budget. But again, everybody at some point of time or other prepares a budget but the reason they again fall into financial problems is that they never stick to that budget. Therefore, once you develop your budget, make sure you stick to it.

Rebuild Your Credit by Joining Credit Unions

There are several credit unions that work like clubs; they allow you to join them by signing up for a membership program. Once they accept you as a member, you may get opportunities to qualify for loans and credit cards on otherwise better terms and conditions. They will do everything possible to help you rebuild your credit at a faster pace.

Build a Saving Fund

When you do budgeting, your main focus should be on saving as much money every month as possible. The more savings you have, the better will be your life after bankruptcy. It does not have to be big; even if you save only $100 per month ($3-4 per day), you will have $1200 of savings every year. Every little bit adds up.

Have a Retirement Account

Make sure you invest at least five percent of your net monthly salary to retirement account. When you know that you have money in your saving funds and retirement accounts, which you can use to pay for the emergency expenses, this will give you peace of mind.

Do Not Overuse Credit Cards

Most people end up filing for bankruptcy because they fail to repay their credit card debts. So, learn from this mistake and be very careful while you use credit cards. Every time you purchase something using your card, take a couple of minutes to figure out how and when you are going to repay the same.

Last, but not the least, when it comes to rebuilding your financial life after bankruptcy, you must also do a credit report review at least once every year,. The idea is to make sure the report is free from errors and that the score reflected by it is correct.

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Posted in Bankruptcy, Life After Bankruptcy | 3 Comments »

3 Responses to “How to Ensure a Better Financial Life after Bankruptcy?”

  1. [...] However, your credit rating will not be hit for ever. You are on a path to financial recovery after you declare bankruptcy. Most people start getting credit offers a few months after their discharge. While the bankruptcy [...]

  2. [...] often wonder how to build credit after bankruptcy. But, as you can see, if you follow some basic strategies, you can put your finances back on track [...]

  3. Dennis says:

    Great and intelligent ideas. Bankruptcy does not mean to feel like you do not belong to the normal group of people. Do not hesitate to mixing up with the people; join your circle, as you were doing before it. Nothing is changed for you; it is your idea which is going to make a difference. Your efforts can change your life mentally as well as financially. You have to follow some strict financial discipline and very soon, you can get every thing back. Budgeting is the most important part of it. Make a budget and have an emergency fund, because emergency can come at any time and from any where so make you ready for it. Credit unions can be a better option for building your credit score. Saving is a very important tool of financial life. It always helps in need so it is very good to save some thing for the future. Plastic money is a big reason for the accumulation of debts so keep a safe distance from the credit cards for some time or use the credit card in a sensible manner. Following these small tips anyone can start living a normal relaxing life after Bankruptcy.

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