Life After Bankruptcy
Restoring Your Financial Future
Once your debt has been removed and you are ready to rebuild your credit, there are a few things that you need to do in order to maintain a solid financial future.
First, you need to evaluate the things that you need to improve so that you will not have to go through this strenuous process a second time. While credit is a key component of our economy, it is meant to be used responsibly as a tool of assistance for those who manage their spending properly. Developing a plan to manage your spending habits will help you manage your finances in the future.
While bankruptcy does help in eliminating and reorganizing your debt, it still may be difficult to obtain a loan or additional lines of credit. We believe that during this period of time you are able to adopt the “live on cash” mentality which will also assist in rebuilding your credit. This time will also allow you to modify your lifestyle and adjust your spending habits. While you may not be able to live lavish, you will be able to regain control over your financial life.
Finding and Maintaining a Job
Part of reclaiming your financial future is having a sufficient income. Having an adequate amount of money flowing in aids in helping you stick to your budget. It also helps you to keep track of your monthly bills so that you can pay them in a timely manner. Not having enough money to support your basic living necessities will cause you to revert to your old habits, putting you back into a financial strain. If you are not making enough money to support yourself, you may need to find a higher paying job or a second job to compensate what you are lacking financially. While everyone is in search of a higher paying job, it is best to avoid multiple changes to your employment history as stable employment does show creditors that you are reliable.
Pay Your Bills on Time
After filing bankruptcy in Atlanta, you must pay your bills on time. While you may not be able to obtain a line of credit right after your filing, paying your bills late or not at all is the worst thing you can do after a bankruptcy. Consider this period as a probation period to show creditors that you are capable on time each month. Creditors view your bill payments as a means of stability before offering individuals lines of credit. Making sure to pay your bills on time can improve your payment history as well as fix and build your credit.
Tracking your spending
The importance of managing your money is tracking each dollar that you spend. While many individuals are reliant on check card and ATM cards, it is often difficult to keep up with purchases. This can also cause you to mismanage your money. That is why it is important to keep a positive balance in your account at all times so that it will reflect in your credit history.
Many banks do offer online tools to assist in tracking your spending habits. Companies such as mint.com also make it easy for consumers to track their spending by categories and set realistic budgets for those groups. Being consistent in your spending while maintaining a positive balance will show creditors that you have a reliable cash flow and make them more willing to trust you with a line of credit in the future.
Rebuilding your credit
After you have been discharged from your bankruptcy claim, rebuilding your credit becomes solely your responsibility. To help reestablish your credit, consider applying for a low-limit credit card. Due to the fact that you will just be on the road to credit restoration, you may have higher interest rates so bankruptcy attorneys in Atlanta say that it is best to apply for a card with a low spending limit. The most effective way to improve your credit is to maintain a small balance and make your regular payments over time. While some people think that it is best to keep a card open without a balance, creditors are interested in seeing how well you pay your balance over a period of time because it shows your reliability. This also helps your credit standing.