Posts Tagged ‘credit repair after bankruptcy’

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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