While filing for bankruptcy might feel like a relief, you may find that your life after bankruptcy will be just as challenging, albeit in a different way.
To really succeed after having filed for bankruptcy, you really need to plan for how you’ll handle your finances in the future. To help you with this, here are three ways to plan for life after bankruptcy.
Spend More Time With Your Budget
As you get ready to file for bankruptcy, it’s wise to spend a lot more time going over your budget so that you can avoid falling deep into debt again.
Geoff Williams, a contributor to U.S. News and World Report, recommends that you budget your money well both when thinking about borrowing more money in the future and just for your regular expenses that you’ll still be dealing with each month. The better you’re able to budget your money and really see what is coming in and what is going out each month, the more in control you’ll be able to be. And when you’re in control of your money and where it’s being allocated, you’ll have a much better chance of staying with your budget and avoiding future issues with debt or bankruptcy.
Start With A Secured Credit Card
Even as you’re filing for bankruptcy, you’ve got to think about how your financial future is going to be affected.
Ideally, you should still be contributing to your retirement or other savings or investment plans that will be available to you in the future. But when you want to start building your credit back up, Bankrate.com recommends that you start by using a secured credit card. With a secured credit card, you will add money to the card that you can then use like you’re using a credit card. As you prove that you’re able to stay within your card limit and may appropriate repayments when necessary, you’ll be able to build your credit in a way that doesn’t present as much risk to you.
Commit To Staying On Top Of Your Bills
One reason you may have slipped into the large amounts of debt that lead someone to bankruptcy could be because you allowed yourself to fall behind on your bills. But because you’re always going to have bills, you’ve got to come up with a way to stay on top of this problem in the future.
According to Mark P. Cussen, a contributor to Investopedia.com, the best way to make sure that you can stay on top of your bills is to be very careful about what your monthly expenses are so that they don’t become more than you can afford. Then, commit to paying your bills in full before they’re due each month.
If you’re going to be filing for bankruptcy soon, consider using the tips mentioned above to help you plan for your life after this action.