If you’re facing serious financial hardship, you may be considering filing for bankruptcy. The one thing that might be holding you back is the idea that you’ll never be able to achieve a good credit score again. However, rebuilding your financial health is possible; it just takes a bit of planning and consideration. The tips below will help you get back on track after you’ve declared bankruptcy.
3 Ways to Regain Control Over Your Credit After Declaring Bankruptcy
1. Set Up a Savings Account
For most people, the issue that led them to declare bankruptcy in the first place was an over-reliance on lines of credit, such as loans or credit cards. Moving forward, you’ll want to avoid rebuilding a line of owed debts. Instead of utilizing your credit cards in an emergency, open up a savings account that will increase over time with interest. That way, if you’re hit with an unexpected bill, you’ll have cash funds to rely on, rather than maxing out your cards.
2. Keep Up With Your Credit History
The key to maintaining good financial health is awareness. Knowing what your standing is in terms of scores, open accounts, and credit utilization will help you determine which areas you need to work on. Make it a habit to check your credit score at least once a month. Websites like Credit Karma® and Credit Sesame® offer free, up-to-date reports, as well as tips and solutions for tackling problem areas.
3. Don’t Miss Payments
After declaring bankruptcy, you’ll need to be on your best behavior financially. This means not missing any payments on credit cards, bills, or rent. Even delinquent payment will cause a ding to your score, making it even more difficult to build it back up. Create calendar reminders or set up automatic payments to avoid missing deadlines.
If you’re considering filing for bankruptcy, the team at The Gil Law Firm in Dothan, AL, can help. With almost two decades of experience, these attorneys have the knowledge and skills needed to help you navigate the complexities of the bankruptcy process. They will guide you through every step and offer tips once the proceedings are complete to help you regain solid financial standing. Visit their website or call (334) 673-0100 to schedule a consultation today.