For many Americans who have accumulated an overwhelming amount of debt, declaring bankruptcy is the best way to regain their financial footing. Discharging debt affects creditworthiness, though, which is why people are often hesitant to file, even if it makes the most sense given their circumstances. Fortunately, rebuilding your credit after declaring bankruptcy is fairly straightforward—as long as you follow a few simple tips.

Devise a Budget

The first step on the road to rebuilding credit is establishing a history of on-time payments. Therefore, it’s essential to devise a budget based on your obligations following the proceedings. In addition to covering the necessities, this budget should account for the minimum payments on any debts that were not discharged, like student loans. It is also wise to pull up your credit report at this point. After confirming the information it contains is accurate, start tracking your score monthly. Even small jumps will provide the motivation needed to stay on track and stick to the budget you’ve devised.

Start Small

Opening a new account and making on-time payments is one of the best ways to demonstrate creditworthiness. However, those who have recently declared bankruptcy will find it hard to secure loans or traditional lines of credit. Fortunately, there is an alternative. Since secured credit cards require a cash deposit, even those with bad credit can typically obtain one. Additionally, many lenders offer secured cards that can eventually be converted into traditional revolving accounts.

If you can spare a few hundred dollars, apply for a secured card, and use it to make purchases that you would have made anyway. As long as you pay the bill on time every month, this will help improve your credit considerably until you can qualify for more traditional financing.

If you’re thinking about declaring bankruptcy and want to learn more about the filing process—or the aftermath—turn to Bueker Law Firm. Located in Stuttgart, AR, this practice is led by Attorney Jeremy Bueker, who has been helping clients navigate complicated legal proceedings for nearly two decades. Whether you need guidance regarding bankruptcy, foreclosure, or repossession, you can count on this lawyer every step of the way. Visit his website to see what past clients have to say about the service he provides. To schedule a free consultation, call (870) 673-1313.