So you have finally been released from bankruptcy, and you are now free to do what you want again.
The world is your oyster! But before you grab a bucket and head to the beach, there are a few things you need to know.
First of all, a bankruptcy discharge is not a license to buy. It may be almost impossible to ignore this desire to celebrate your newfound freedom, but if you want to be debt-free, you will need to be quiet for a while, especially in the three months after you are released.
Here’s why: you’ve probably been in debt forever, but you’re not the only one who knows it.
Credit card companies have also picked up the scent, and you are likely getting the apps on the left, right, and center today.
Talk about tempting! The best thing to do is to launch these applications directly into the trash, regardless of how much this company or ad says it wants to help you recover your credit.
The truth is, they don’t want to help you rebuild; they want to help you get back to the position that led you to bankruptcy in the first place.
These ‘high risk’ cards come with many caveats – the fee you pay to get it, for example.
Some cards will charge for the card, placing it on your card. So if your card has a $ 100 limit and costs $ 75, guess what, you only have $ 75 in credit. Analyze this and get ready for some nasty fees.
So, how can you get your life back to normal?
Before doing anything else, you need to change your consumption habits. Think about the cost and quality of things and put yourself in control.
For example, it is worth buying this branded bread when the store brand is so good and costs a dollar less.
It is a small-scale example, but if you can apply that kind of thinking in small steps, soon, you can use it for everything you buy, no matter what size.
So cut out coupons, try to buy when things are on sale, and don’t go crazy when you buy. Second, prioritize your accounts.
Your most important bill, which must be paid on time every month, must be the rent or the mortgage. It is your shelter, and without it, dealing with anything else that comes your way becomes much more complicated.
Your utilities are next because you should be able to cook and store your food. Your third most crucial bill may be the telephone, the fourth your cable or satellite TV, and so on.
Make an average of how much of your salary goes to rent/mortgage and bills.
Then, reserve a little of each check to put on each invoice. It can be tedious, but trust me, and it will be worth it when you get into the stream.
The second thing you need to do is save $ 500 by doing the same thing you did with your bills – dedicate a little bit of each salary. Only this time, open a new account.
After saving $ 500, run to the nearest bank, and apply for a guaranteed bank loan for that amount.
The bank should have no problem fulfilling your request, as the money is already there. In the next 90 days, make your payments on time, always. You will be surprised at how quickly it will increase your credit than high-risk cards!
If you need to use credit, why not do it to your advantage? Here’s how: Buy an item that is for sale with your credit card.
Then, when your credit card statement arrives, pay the amount in full. That’s it! You enjoy your new item for a month before settling.
If you can keep this up, your credit will have nowhere to go but up. By applying the tips above, your loan will receive an increase when you need it most – within the first 3 or 4 months after bankruptcy settlement. You received a second chance. Don’t give up – you can do it!