It can be very hard to live with bankruptcy. As you look at the hole you’ve dug yourself, you might think there is no escape. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
Think of building new credit after you have to file for bankruptcy. That can be hard with poor credit, but a viable option is a secured credit card. The interest rates will be higher than normal, but then again due to your history you are not going to be able to obtain normal interest rates anyway. You will be better able to obtain loans and other forms of credit if you actively rebuild your credit and keep it in good standing.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If that’s the case, it is beneficial to apply for one or even two secured cards. By doing this, you will be letting people know that you want to fix your credit score. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
A useful piece of advice is to diligently pay all bills every month, and try to pay more than minimum amounts due whenever possible. Avoid charging up your credit card and do not purchase items you cannot afford.
If you are feeling down, use the internet to chat with other people who have been through bankruptcy. Because of the extra stress involved in a bankruptcy filing, you may feel isolated from your friends. The internet lets you talk to others who have survived bankruptcy and benefit from their experiences.
Filing for bankruptcy should not be done on a whim. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If foreclosure looms, think about getting your loan plan modified. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Do not forget to be around those you love. Going through bankruptcy is difficult. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. Many people tend to hide until their process is completed. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Remember that bankruptcy isn’t the end of the world. Just look at Donald Trump. He has filed multiple times! Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. So implement a savings program, and watch how much it helps you when you need to apply for a home or car loanShare