What Not to Do After Bankruptcy
At the law firm of Rothschild & Ausbrooks, our attorneys provide experienced bankruptcy representation for clients who are faced with significant amounts of debt. We work hard to get our clients back on track financially. Sadly, some who successfully recover from debts after bankruptcy, will start to get in over their heads again.
We want you to have the tools to move forward with your financial life and never get in this position again and have come up with some handy advice to help you.
Avoid “Fast Cash” Loans
Taking out a payday loan is one of the quickest ways to get cash. However, they charge steep interest rates that many people cannot keep up with. Add in fees charged when automatic payments overdraw your bank account and those fees charged on missed payments, that fast cash might cost you a lot more in the long run.
Re-Evaluate How You Use Credit Cards
A credit card is an important financial tool, but any tool can be misused and cause damage. Credit card interests are typically lower than a pay day loan, but still can be exceedingly costly. Luckily, credit cards only assess interest on carried balances. This means, however, you have to do everything you can to pay off that bill each month.
Be Realistic About What You Can Afford
Everyone wants the nicest things, but they tend to cost a lot of money. When you’ve just come out of a bankruptcy and your clear of debt it might be tempting to try and buy a new car or look at getting some property, but that just might not be possible.
One of the most important things to remember when starting fresh after bankruptcy is to resist easy credit. The American economy depends on consumption, which is driven by credit. Realize that the reason you can get a car loan quickly is not for your convenience, it is to enable car dealers to sell cars fast. By making wise choices now, you can ensure that your finances stay healthy down the line.
Speak With Our Attorneys for a Free Bankruptcy Consultation
Please contact Rothschild & Ausbrooks, PLLC, today to get answers to questions about credit after bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code