Clark & Washington

Tips for Rebuilding Your Credit In the New Year

When you are ready to rebuild your credit, a number of strategies will help get you back into solid financial shape. When you are barely able to make minimum payments on your credit cards, filing for bankruptcy will give you a fresh start with creditors. While some debts, such as back income taxes and student loans won’t be erased in a bankruptcy, you’ll be able to rid yourself of the burden of most other types of debt. Once you file for bankruptcy, you can begin working on rebuilding your credit one step at a time.

Find Steady Employment 

To truly rebuild your credit, you have to have the financial means to live without credit. This means you’ll want to find a decent job that allows you to pay your bills without living beyond your means. Take a careful look at your options, and strive to be able to take care of your necessities without using any type of credit to start. Financial stability starts with having a secure job, and focusing on your basic needs first.

Watch What You are Spending

It can be time consuming to track your spending habits, but you can find a number of apps for your smartphone that will do this for you. Learn where you are spending your money so that you can keep track of it. When you know where your money is going, you will be able to better control how you choose to spend your money. While a coffee once in awhile isn’t going to destroy your budget, a daily coffee, bagel and newspaper might make a difference.

Rebuild Credit Slowly

After you file for bankruptcy, you may be surprised at how quickly you’ll be able to get a new credit card. Apply for one card, use it sparingly, and pay it off every month. This will show that you can responsibly pay back debt to creditors.

To learn more about rebuilding your credit through bankruptcy, call the law office of Clark & Washington today at 770-285-0973 for a free initial consultation.

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