Choosing to go through the process of bankruptcy was likely a very difficult decision but now you have the opportunity to start new. The New Year is a great time to create new habits and ensure you get started on the right foot financially. Use these tips to help you accomplish your financial goal after bankruptcy this year.

Rebuild Your Credit

Fresh Start After BankruptcyBankruptcy can really impact your credit. Not only does it allow you to get rid of some debt, if not all, but it can also significantly reduce your credit score. Bankruptcy stays on your record for up to ten years so you need a way to combat that. The best way to do so is by rebuilding your credit. If you cannot get approved for a credit card, you should contact your bank for a secured credit card. With this type of card, you give them the money first and then use the card like it is for credit. You then pay this bill on a monthly basis just like a credit card and it is reported as such to credit reporting agencies.

Only Spend What You Can Afford

Even if you do get a credit card, you should only spend what you can afford, not according to your limit. Your goal should be to pay off the credit card every month so you can build up your credit score. You do not want to spend so much that you find yourself in debt again. Remember that this is just a way to build credit for the future and now a way to find your lifestyle. Live within your means and you will be better able to navigate the future.

Pay Bills on Time

If you do have outstanding bills that you need to pay, make sure you always pay them on time. You do not want to get into the same situation again. Set yourself reminders or sign up for automatic bill pay so you never miss a payment. One missed payment can greatly impact your credit score so you want to be sure that this is a priority for you every month.

Life after bankruptcy can be stressful and you may not know where to start but we are here to help. For more information about starting over after bankruptcy and other steps you can take, be sure to contact Clark & Washington.