We understand that bankruptcy can be a scary word, however it’s not necessarily the case. Bankruptcy can work in your favor if you seek efficient legal counsel. If you choose to use this tool, here are some actions you can consider that can help you reestablish a good credit.
1. Make a budget. Track your daily expenses for three months to see were the money is going and to get an idea of how much money your spending. This will allow you to create a realistic budget that fits your monthly income.
2. Use cash more. After bankruptcy, you may experience a fear of credit. This may not necessarily be bad at first. You’ll start paying more with cash and you’ll get use to buy only what you need, and you’ll end up saving more.
3. Pay all your bills on time. To reestablish your credit its important that your record shows you paying bills and bank fees on time.
4. Keep an eye on your credit report. You want to make sure that your efforts to restore your credit are reflected on the credit reports others look for you.
5. Get a credit card. To establish a good credit record you need to use your card only for stuff you need and pay it in full every month. Some banks are willing to give you a card even after bankruptcy.
6. Build a long-term relationship with credit. Avoid credit card hopping, it may help you keep a better rate but a long and healthy record with one card could help you more to rebuild your credit.
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