There are a lot of people out there who are struggling at the moment. We all have our own problems and some people have one of a more serious nature. If this is you and you’ve been declared bankrupt you shouldn’t worry about it. Now that it’s happened there is nothing you can do to change it and worrying about an irreversible event will only leave you more stressed out than ever before. What you really need to do is look towards the future.
Let’s talk about your credit because at the moment you know it’s not looking too healthy. Just because you have reached rock bottom doesn’t mean you have to stay there forever. Plenty of people have been in your situation before and they have picked themselves back up and climbed out of their hole. That is exactly what you’re going to do and to help you out we’re going to look at a few ways you can take control of your finances again.
Learn to budget
You have let your finances get out of control once and you can’t afford to let it happen again. You will need to learn how to make a budget, but once you have one you need to stick to it religiously. There is no point in having one if you are going to spend money like crazy. Only buy the things you need and eventually you might end up with a nice amount of money in your savings account.
Pay on time
It’s important that you always pay your bills on time. You have probably gotten used to the fact you don’t need to pay something on time, but look at the mess that got you into. Even if you have a very small bill it must be paid before the deadline. You won’t be able to fix your credit rating if you’re late all the time. This is one of the reasons why a good budget is so important.
Keep an eye on your credit report
When you are declared bankrupt you will start with a new slate. Your credit report will be poor for a few years while the bankruptcy is still on show, but you must make sure that it doesn’t get any worse. You never know when someone might make a mistake and you can’t afford for that to happen. If you do see anything wrong with your credit report that shouldn’t be there you can deal with it right away.
Don’t make big purchases
Once you have hit rock bottom it should be a wakeup call that you shouldn’t be spending crazy amounts of money when you can’t afford to. This doesn’t stop some people from making big purchases like a car. If you want to buy a car you should save up cash and get one you can afford. You don’t need to drive anything too fancy and you will save yourself from getting into more trouble.
Get some credit
You might be scared to try and get credit again, but you must because it can actually help your credit rating. You will be allowed to get some sort of credit card, even if it needs to be a secured one, so get it and use it. Just make sure you use it sparingly and always pay it off on time. When people see you are able to handle the responsibility it will help you out in the future.
You’ve messed up
You know you’ve messed up and it’s now in the past. Just make sure you change your ways and you can have a bright future. Millions of people are now living normal lives after suffering bankruptcy and you will too.
Adam Shaw is an bankruptcy law attorney in New York. He has credible experience when it comes to tackling financial matters and also gives valauble suggestions on these issues via his blog.