Bouncing Back From Bankruptcy

Bankruptcy is an effective tool of debt relief, but  many people assume it can be damaging. Actually, the opposite is true. In fact, what does the most damage to your financial situation is missing payments and ending up in default. While filing for bankruptcy is a method for improving your financial situation, there is still a few things you need to do to take control of your new path to financial freedom.

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Now that your debts have been discharged in bankruptcy you may be thinking your job is done. Actually, you still have many tasks ahead of you.

First, review your credit report. Not all creditors update information right away and you may find that your information is inaccurate. Request to have your creditors update your account so your information reflects your newly resolved debts.

Next, put your credit counseling tools into action. Having attended a debtor’s education course you learned lots of valuable information about money management and using credit wisely. Now is the perfect time to change your financial habits by budgeting and prioritizing saving money.

Last, start to look for new credit. Remember that not all credit is good credit for you right now. Find a low limit, low interest rate unsecured line of credit. Keep your balances moderate and make timely payments. Stick to a plan of minimal credit purchasing and responsible payment history for up to a year before moving into bigger lines of credit.

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