Finances After Debt

: Chris Lee Law Firm

  Filed under: Money Management

Wage Garnishment

financial freedomWhether you resolved your debts through a settlement agreement, credit negotiation or a bankruptcy, there are some aspects of your financial future to be considered. The most important thing to remember after debt resolution is staying out of financial trouble in the future. This often means making some important changes and knowing what to expect in the future.

New Habits

Even if you didn’t end up in overwhelming debt due to careless spending or poor money management, chances are you probably didn’t have enough saved to help keep you afloat during a time of financial hardship. Don’t feel bad, very few people actually do. However, that doesn’t mean you can’t make some important changes to prevent something similar from occurring in the future.

The first step is to look at your old financial habits to find areas you can improve. Do you have a set monthly budget? Are you staying within the budget? Do you  have a savings account? Are you prioritizing saving money each month? Keeping a strict eye on your money and making saving a priority are two habits of a financially savvy individual, make sure you are always looking to improve your financial situation through keeping a close eye on your money.

New Accounts

After debts are resolved it isn’t uncommon to begin receiving credit offers right away. While this may come as a sign of relief, you should proceed with caution at this point. There is no need to jump back into credit after resolving debt burdens and one to two manageable lines of credit should be adequate to help you repair your credit. Remember that credit should be used wisely for establishing and maintaining a credit reputation. Don’t look at credit as a product of purchasing convenience, but as a tool for representing who you are as a borrower. If you do take out a new line of credit, try and find the lowest interest rate and keep balance less than 30-40 percent of the overall credit limit.

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