For many Americans who are drowning in debt, bankruptcy can provide a much-needed fresh start. Discharging debt comes with consequences, though, and it’s natural to take pause before filing. It’s also natural to fret about life after bankruptcy; how will you bounce back and rebuild your credit? Thankfully, it’s fairly easy to overcome the hurdles that having a bankruptcy on your record poses. With some strategic financial planning and a little patience, you can regain your footing. Here are a few tips for getting started. 

3 Steps to Bounce Back After Bankruptcy 

1. Devise a Budget 

Calculating your monthly income and expenses will help you determine just how much—or how little—disposable income you have. By making it a point not to spend more than that figure every month, you can avoid falling into more debt after getting a clean slate. Allocating funds for your bills before anything else will also ensure you never miss a payment. With every on-time payment, your credit score will increase just a little. 

2. Obtain a Secured Card

You may not qualify for a normal credit card immediately following the bankruptcy, but signing up for a secured card will show lenders your creditworthiness. Because these cards require a cash deposit, they're available to those with bad or no credit. And if you use yours responsibly every month, you may be able to convert it to a traditional revolving account after a short while. 

3. Consider Short- and Long-Term Plans 

A key component of financial planning is establishing concrete goals. Consider where you want to be in six months, one year, and five years, and then determine what you must do to get there. For example, if you want to buy a home in five years, you’ll have to save for a down payment by putting aside a small portion of every paycheck. You'll also want to avoid accumulating any more derogatory marks on your credit report. Determining your goals is a key component of bouncing back because it will provide the motivation to keep making savvy financial decisions even when you’re feeling overwhelmed. 

Whether you’re thinking about declaring bankruptcy or you just finished discharging the last of your debt, turn to Better Life Management for financial planning services. Located in Florida, they’re proud to help clients prepare for the future while making the most of the present. To talk to their knowledgeable financial planning expert, call (855) 256-4968. You can also request a quote on their website.