After filing for bankruptcy, it’s important to take the appropriate steps to restore your credit as quickly as possible. Don’t believe anyone who tells you that filing for bankruptcy will permanently ruin your credit. While it’s true that a bankruptcy will appear on your credit report for 10 years, there are ways you can begin rebuilding your credit soon after your case has been discharged.
- Pay your bills on time and in full. This is one of the most important ways you can start rebuilding credit. Do whatever it takes to pay your bills on time, and always make the minimum payment. If you can pay the bill in full, that’s even better. The more you pay off now, the less chance there is of accumulating debt.
- Budget your money wisely.
- Make a spending chart. This will show you where your money is going (i.e. rent, utilities, gas, groceries, medical bills, personal items, etc.) and how much you spend on each of these things each month. In doing so you’ll be able to see how you are spending your money, and if there are places where you should be cutting back or places you can afford to spend a little more.
- Don’t spend more than you can afford. It’s that simple.
- Put money into savings. This is also very important. Having a safety net in case of a job loss, medical emergency, or any other unexpected circumstances may save you from financial ruin. Many people have fallen back into debt over expenses they occurred unexpectedly.
- Use debit cards instead of credit cards. Debt cards take money directly out of your account, so you don’t have to worry about paying off your purchases in the future. If you don’t have enough money in your checking account, think twice about whether or not you really need to purchase the item.
For more helpful tips on how to get your finances back on track after filing for bankruptcy, please feel free to contact the Law Office of Teresa Beyers today! An experienced Los Angeles bankruptcy attorney at our office would be happy to provide you with any advice, information, or resources you need.