How to Recover from Bankruptcy Quicker than you thought Possible!
Hard economic times have left many Americans facing the devastation of bankruptcy. While it can be an emotionally grueling time, it is important to remember that there is life afterwards! Here is what you need to know to recover quickly.
You cant watch the news without realizing that millions of Americans are struggling to pay their bills. Delinquencies and foreclosures are on the rise and many have no where to turn to for help.
Bankruptcy may be the only decision for some.
Bankruptcy leaves both financial and emotional scars that few can understand without having witnessed it themselves. Still, it isnt the end of the road but rather a new beginning.
Here are some steps you can take to regain your life faster than you ever dreamed!
The most important thing to keep in mind is that you can not let the bankruptcy define who you are!
Do not beat yourself up! Promise that you will never let something like a bankruptcy happen to you again, but then move on. It was one time in your life, not who you are!
Now is a great time to develop multiple streams of income.
Regardless of if you have a secure job, it is wise to always have income from more than one source. There will never be a better time to invest in you than right now! Why not learn internet marketing, photography or some other skill that could bring in a few hundred extra dollars a month? (Just be careful you dont spend too much on systems that you never implement!)
Regaining your financial life is another key area of importance. One of the first things you will need to do is open a bank account. (Assuming you do not currently have one.) You might try visiting a credit union or grocery store bank and establishing a relationship with the branch manager. Explain what happened and find out what you will need to do to get another account. It may not happen overnight, but if you do what is necessary, you should be able to open an account fairly quickly.
Next, you will want to reestablish your credit. This step might seem counterintuitive. After all, wasnt it too much credit that got you into this mess in the first place?
Unfortunately, you have to use credit to get or improve your credit score. And having a low or no credit score is very expensive.
Just after a bankruptcy you may think that no one will grant you credit. Luckily, there are several options.
A Certificate of Deposit loan from your bank is one of the best things you can do to restart your credit file. What you will need to do is go to your bank and see if they will allow you to open a CD and take a loan out against it. Although you will end up paying interest on your own money, in the long run it is a sound strategy because you will reestablish credit quicker than you would be able to otherwise.
The second way to reestablish credit is through secured credit cards. You will likely begin getting offers for these shortly after your bankruptcy has been discharged! A secured credit card works much the same way as the CD loan does. You will give the lender a set amount upfront and they will issue you a credit line of that amount or perhaps slightly more.
You want to be an educated consumer when you look for a new credit card company. While your first instinct may be just to go with whoever will approve you, you should shop around and find the best card for you! Key features to look for include a low annual fee and no application fee! It is also great if you can find a card that will convert to unsecured after a specific number of on time payments.
It is critical that you manage your new credit wisely. Do not let yourself fall into old traps again! Lenders will be much less forgiving of late payments after your bankruptcy than they would have before.
You need to monitor your credit report monthly.
Make sure that lenders arent reporting accounts that were included in your bankruptcy as open and past due. This happens more often than it should, especially when lenders have sold your account to collection agencies.
The best thing to do is to have a form letter on hand to send to anyone who contacts you. Make sure it includes your information, the case number and your attorneys contact information. That way, it is easy to respond and nothing falls through the cracks.
By following these simple steps, you will be back on your feet quicker than you ever thought possible.
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