Now that you have filed for bankruptcy, now what? It’s time to start repairing what is broken. A few tips to repairing your credit in easy and manageable ways after your bankruptcy is important to get you right back on track.
Change Your Habits – Budget
The first thing that will need to change is how you begin spending money after your bankruptcy. It is important to be more cautious to avoid getting sucked back into the hole of bankruptcy. Create a budget with someone that you trust and that can help keep you accountable to it. Budgeting is important especially if you filed for Chapter 13 bankruptcy because you will need to stay up with current and upcoming payments while also paying down the debts in payments of assets you were able to keep.
Pay Down Debts
Pay down whatever debts you have left is the next biggest item. If you were left with some debt after bankruptcy it is important to pay it down as much as possible as time goes on. Making debt be one of the first things you pay off to avoid paying more interest than necessary. As you incorporate paying down your debts into your budget you will want to be sure you prioritize your budget and where certain items fall.
Get New Credit
New credit after a bankruptcy can be tricky, however, very important. You will want to slowly start rebuilding your credit in small ways that will make a difference over time. Immediately after bankruptcy, you may not be able to get a credit card immediately. However, a secured credit card or a credit card through a gas station in your area as they tend to be more lenient and an open line of credit with little to no balance will help you take steps to rebuild your credit.
It is important to remember that life isn’t over after bankruptcy. Success is just ahead and it is important to begin mending what was previously broken to help down the road. After bankruptcy, make a budget and tell a trusted individual about your plans so they can help keep you accountable and help you to not overspend. It is also important to pay down any remaining debt you have leftover. By incorporating these payments into your budget you won’t miss a payment and you will be sure that it gets prioritized and in turn, paid. You will also need to start rebuilding your credit. You can talk to a bank or credit union in your area about lines of credit you can open considering your circumstances. By rebuilding your credit in small amounts you will have more luck being considered for lower interest rates, credit cards, cars and homes down the road by having successful lines of credit post-bankruptcy.