Bankruptcy can provide the fresh financial start that you have been longing for, but unless you make a concerted effort to avoid racking up excessive amounts of debt again, it will not be helpful. Fortunately, it’s fairly easy to make the most of your clean slate. Check out a few tips to get you started below.
3 Tips for Making the Most of Your Fresh Start Following Bankruptcy
1. Assess Your Spending Habits
If you were forced to declare bankruptcy because of a lengthy divorce or mounting medical bills following a catastrophic injury, your spending habits may not be an issue. However, if you racked up far more consumer debt than you could reasonably pay off, you need to take steps to avoid doing so again once you secure new lines of credit. Look at your monthly cash flow to determine if you need to cut back on certain luxury items, then devise a reasonable budget and stick to it.
2. Check Your Credit Report
Review your credit report to make sure you know where you stand immediately after filing. This will make it easier to track your progress when it comes to increasing your credit score. Keeping an eye on your credit history is also a good way to ensure you spot any fraudulent activity or identify theft sooner rather than later.
3. Get a Secured Credit Card
You can start rebuilding your credit immediately after filing. One of the easiest and most effective ways to do so is by opening a secured credit card and using it responsibly. Unlike traditional credit cards, you must put down a deposit to open a secured card. This makes them much easier to get, even if you have poor credit.
If you are struggling to pay off an overwhelming amount of debt and you want to explore your options regarding debt consolidation or bankruptcy, turn to The Gil Law Firm in Dothan, AL. Rafael Gil III helps clients throughout Alabama, Georgia, and Florida regain their financial footing. If you want to learn how to file bankruptcy, visit their website, and call (334) 673-0100 to schedule an initial consultation today.