More and more American families are being devastated by bankruptcy. Here are easy steps that anyone can follow to bounce back quickly! There is life after bankruptcy!
You cant watch the news without realizing that millions of Americans are struggling to pay their bills. Delinquencies and foreclosures are on the rise and many have no where to turn to for help.
For some, the only option is bankruptcy.
Bankruptcy leaves both financial and emotional scars that few can understand without having witnessed it themselves. Still, it isnt the end of the road but rather a new beginning.
You can get your life back faster than you ever dreamed! Here is how!
The most important thing to keep in mind is that you can not let the bankruptcy define who you are!
This was one period of your life and does not represent who you are! It is important that you take the steps to make sure nothing like this ever happens again, but do not beat your self up. Any time you waste feeling bad is time you could be spending on building a better life.
A great way to move on is to take the time to generate income from multiple streams.
You family is going to be more secure if you have income coming from several sources, even if your job is very stable. This is a great time to invest in you and learn a new skill! Why not start a website based on a hobby or a home-based business?
Starting your financial life over is also very important. The first step should be opening a bank account if you lost your account during the bankruptcy. This could take some time. A credit union or grocery store bank may be a good place to start. Do not underestimate the value of establishing a relationship. Even though the branch employees may not be able to change the rule for you, they can help by explaining what you will need to do to get an account and going to bat for you to help it happen.
Next, you will want to reestablish your credit. This step might seem counterintuitive. After all, wasnt it too much credit that got you into this mess in the first place?
The only way to improve your credit score is to use credit. You have probably already learned that having a low or no credit score is very expensive.
Just after a bankruptcy you may think that no one will grant you credit. Luckily, there are several options.
A Certificate of Deposit loan from your bank is one of the best things you can do to restart your credit file. What you will need to do is go to your bank and see if they will allow you to open a CD and take a loan out against it. Although you will end up paying interest on your own money, in the long run it is a sound strategy because you will reestablish credit quicker than you would be able to otherwise.
The second way to reestablish credit is through secured credit cards. You will likely begin getting offers for these shortly after your bankruptcy has been discharged! A secured credit card works much the same way as the CD loan does. You will give the lender a set amount upfront and they will issue you a credit line of that amount or perhaps slightly more.
Be smart when you choose your credit card company! You are looking for a low annual fee. Avoid paying an application fee if at all possible. The ability for the card to convert to unsecured at some point in the future is another great feature to look for
Now that youve reestablished your credit, make sure you manage it wisely! Make all of your payments on time as lenders are likely to be less forgiving of minor slips ups than they would have been before the bankruptcy.
Monitoring your credit regularly is very important.
Make sure that lenders arent reporting accounts that were included in your bankruptcy as open and past due. This happens more often than it should, especially when lenders have sold your account to collection agencies.
One of the easiest solutions it to keep a letter on hand to send to any lender that contacts you. Include your personal information, the bankruptcy case number and your attorneys contact number. If you have this on hand, it will be easy to respond to any lenders who are still trying to collect from you.
By following these simple steps, you will be back on your feet quicker than you ever thought possible.