If you have recently completed your bankruptcy case, congratulations. You have taken an important step to resolving your financial troubles. While not everyone will need bankruptcy to get back on track, it certainly can be a valuable tool. However, your work is not finished yet.
The first thing you should do is look at your finances and spending habits. Even if your financial trouble came about through unforeseen circumstances, chances are you could still learn a thing or two about money management. The information given to you in the credit counseling course is a great way to start. Set a budget, track your spending, avoid using credit cards for unnecessary spending and prioritize saving. These are all habits of a smart money manager.
While bankruptcy doesn’t damage your credit, your experience with debt and default accounts did. Therefore, you must work to rebuild your credit. Check your credit report for accuracy and be sure to have all of your accounts updated after the bankruptcy discharge. Consider one small line of credit that you can maintain a manageable balance on for several months. Keep your total debt balance below 40% of the overall spending limit. Make timely payments and stay consistent for six to twelve months. This will give you a head start to a great credit score.