Bankruptcy is a means to an end. It helps you eliminate debts and get yourself into a better financial situation. You’ll go through credit counseling in most cases, and you’ll learn better ways to manage your money.
There will be some negative impacts caused by bankruptcy. You may not be able to take out a loan or to get credit. At the same time, you should have more free income that can help you stay stable while your credit score improves.
It’s possible to live a normal life after bankruptcy
After bankruptcy, it’s possible to live well. You do need to make sure you focus on a few changes, though. Here are three tips to help.
- Start your savings now
If you have money left over after your bills, now is a good time to start saving. Putting money aside will help you avoid creating new debt that may make it harder for you financially later on.
- Look into secured credit cards
If you do want to get credit, one of the ways you could do so is by putting down a payment on a secured card. Secured credit cards usually ask for a down payment that is either a portion of the value of the credit line or the whole value of the credit line.
This card is designed to report to the credit bureaus so that your credit can increase over time. Best of all, if you ever can’t pay, the deposit usually covers the entire bill.
Start small and build back up over time
It’s a good idea to start small after your bankruptcy. Build back up with the necessities first, and then slowly start adding in extras. You want to be able to manage your finances while still having savings that can support you for a few months if you lose your job or find yourself struggling to make ends meet due to unforeseen problems in your life. Purchase items you need, and focus on stability before adding additional expenses.
These are three tips to help you live a normal life after bankruptcy. With patience and good money management, you’ll be on the road to success.