“Here I am, I’m still standing. Here I am, after all I’ve been through. I survived every toil and every snare…” Pastor Marvin Sapp
According to the Administrative Office of the U.S. Courts, in 2005, approximately 1.6 million people filed Chapter 7 bankruptcy. Unfortunately, I am one of the individuals included in that 1.6 million.
I was the designated fool amongst my family and “so-called” friends. My poor judgment caused me to co-sign for family and friends that didn’t like to pay their bills on time or not at all. I also accumulated a lot of debt on my own trying to get ahead in life.
Obtaining credit after bankruptcy is difficult. You will likely end up paying higher interest rates and could be targeted by unscrupulous lenders who believe that desperation makes you an easy target.
Regardless of your situation, your goal after filing bankruptcy should be to establish a good credit history. Here are 5 simple things you can do to start re-establishing good credit.
Make a budget.
Track your expenses for three months. This will help you get a good idea of how much you’re spending and where your money is going. Then create a realistic budget that fits within monthly income. This will help you set boundaries on spending and direct your money where it is supposed to go.
Pay all your bills on time.
This is an essential part of rebuilding your credit. After going through a bankruptcy, the last thing you want to do is partake in the same behaviors of paying bills late. You must pay all your bills on time, even the small ones that you think don’t matter.
Get a secured credit card.
The best way to establish credit is to get a secured credit card. Be sure to keep the utilization below 30%. Anything over that will do more harm than good to your credit.
Re-establish credit through a line of credit.
There’s a good chance that your bank will offer a personal line of credit that can be secured by a savings account. This is known as a secured loan. Find information more on wesbite top rated online casinos. While this will help re-establish your credit, the interest you pay on the line of credit will far outweigh the interest you earn on the savings.
Monitor your credit report.
You went through bankruptcy to get a clean slate and you need to make sure this is accurately reflected in your credit reports. You also want to take control of your finances and start making some smart moves, which means monitoring your report regularly for errors.
Bankruptcy is a tough pill to swallow and it can be embarrassing as well. Trust me, I know firsthand, but I’ve learned from my mistakes and I want you to know that you can bounce back with time, intentional effort and the proper knowledge.
If you would like more information on overcoming bankruptcy, visit www.increditablefinancialsolutions.com to schedule a consultation.