Regardless of whatever led to you filing for bankruptcy, finding yourself in chapter 13 is downright stressful. You may not be sure where to begin as far as recovering your finances.
While you might get a lot of legal assistance (you could learn more here in the case you would be interested) when you are filing for bankruptcy, it is the road that follows that could be tumultuous and hard to navigate for a lot of people. Many say that it’s impossible to recover afterwards. However, the truth is that it is possible to start over. With a positive attitude and a little bit of information, you can financially recover even after bankruptcy. Put the past behind you and get your finances back in order by following these tips following bankruptcy.
Get a Low Limit Credit Card
One of the most common misconceptions related to bankruptcy is that you’ll never be able to qualify for credit again. However, the truth is that you can get a credit card even after bankruptcy. You won’t be granted a high credit limit, however, having a small limit will help you build your credit back up again.
In some cases, you may not be approved right away; however, you should not worry. Wait a while, and try applying at a later time once you’ve gotten your credit up more.
Keep An Eye On Your Credit Score
It’s important that you keep a close eye on Your credit score once you set out to rebuild it again. Stay up to date with any changes on your credit report so that you no whether you’re making progress or not. In the beginning, it may feel like building your credit back up again will take decades.
However, with patience and dedication, you will slowly watch your score rise to where it needs to be. It may not happen overnight; however, a small concerted effort will pay off over time.
Don’t Live Beyond Your Means
It’s a good idea to set up a reasonable budget for yourself to control your spending following bankruptcy. Since bankruptcy is supposed to be a lesson on how to manage your expenses better, then it’s a great time to start carefully spending your money.
The idea is to stop spending recklessly and live within your means. Creating a budget isn’t as complicated as it might sound. It’s as simple as using an app that will easily track what you spend.
Start an Emergency Fund
One of the most intelligent things that you can do with your money is to set aside an emergency fund for difficult times. Rather than turning to your credit cards in an emergency, it’s important to have cash.
Set aside at least several months of salary so that you know you have money to depend on in the absence of credit. You never know when something in your house may need to be repaired, or your health could be compromised.