Being declared bankrupt is scary. It is a status that could haunt for years. Everyone makes mistakes in life but you won’t be allowed to forget them when it comes to money. However, that doesn’t mean you can’t learn from them to bounce back to a more financially healthy situation.
Bankruptcy is a serious matter and should be a last resort and anyone facing financial troubles should first seek legal assistance to see if there is an alternative solution. It will impact your future but it doesn’t have to dictate it. As one door closes another one opens. Make this your new starting ground and bid to change for the better.
If you keep your finances under control from this moment forward then you can rebuild your credit and obtain a more beneficial lifestyle for the future. The key is to not fall for the same mistakes as before.
Credit will be hard to come by following bankruptcy, although you should expect high interest offers from lenders looking to bait you. Don’t fall for those tricks. Equally important, though, is to keep your spending under control by avoiding the traps that many people fall for on a daily basis.
If you really want to improve yourself, the best way is to understand why you made those errors in the past. Some situations may have been beyond your control but the majority of bankruptcy cases ae down to poor decisions and financial negligence. Going back over those steps and realising how things could have been handled better could be the key to unlocking smarter choices in the future.
Whilst doing this, you should also take the time to check your credit score with Experian or another company to ensure that any debts incurred prior to the bankruptcy have been recorded in that manner. The last thing you need is this new chapter to be tarnished by the mistakes from the last one. Correcting those mistakes is one of your rights and you should take it upon yourself to also make it a responsibility.
Whilst avoiding big credit purchases is advised throughout the foreseeable future, you still need to make some form of transactions to rebuild your score. Small, regular purchases combined with quick repayments is the target.
If you do have a credit card, for example, perhaps consider buying daily train tickets to work via this method before paying the bill off promptly. This way you are building your credit score without making unnecessary purchases. This has to be the best method.
An alternative to this is using store cards. However, if you do travel down this route then it’s essential that you only stick to purchases you need. And don’t forget to pay the bill off in time, those rates of interest are crippling and will also damage the credit score you are trying to rebuild.
Nobody said bouncing back from bankruptcy will be easy. But it is possible. Stick to a strict, sensible plan and you’ll soon see your situation improve.