How to Make a Fresh Start after Bankruptcy

How to Make a Fresh Start after Bankruptcy

Starting over following a recent bankruptcy could be very confusing and difficult. That could be because you would have to deal with all that you have been through. A fresh start is necessary to begin anew and emerge out of the bad experiences. But you could have lots of baggage. There is a need for you to start rebuilding your personal finances as quickly and as effectively as you could.

The first thing you should do to get to a fresh start is to deal with all of your emotions. After doing so, you would find yourself up and ready to finally deal with your personal finances. Here are several more tips that could help you get to a new start so you would never cross that path to bankruptcy again.

Start saving up

Your goal and long-term aim at this point would be to get up financially and to avoid getting bankrupt again. It is best if you would retain all the lessons you have learned from that harrowing financial experience. The first thing you should do is to save money to build an emergency fund. This way, you could be sure you would have money to spend when you face emergencies like when your car suddenly breaks down or when you get seriously sick.

It would be ideal to set up a workable budget. By now, you should fully understand and know your income flow and outflow. Your personal budget would be the backbone of all your succeeding efforts to take control of your personal finances. Be sure to stick to your budget no matter what happens. Discipline is a necessary virtue that you should strictly and religiously observe especially when it concerns your finances.

Re-build your credit record

You have to gather enough courage to check your credit report after discharging all your outstanding debts at this point. You should check if the records are marked appropriately. You may not have to expect to find your credit score in an impressive condition. But there is no need to lose hope. The fact is that anyone could always re-build his own credit history.

That is why you have to aim to start rebuilding your credit by setting up an ideal payment history. Again, personal and financial discipline would be a key to achieve this goal. You may start by paying all your dues on or before the due dates. Now is not the time to be a daredevil in waiting for the last minute to pay any bill. Nevertheless, you should avoid getting into any possible default as it would certainly worsen your credit score.

Fortunately, there are many financial products in the market that you could obtain and use to help yourself rebuild your credit history. In the end, it would also help if you would live within your means. Say goodbye to extravagant and luxurious lifestyle if your current income could not afford it. You have to prevent resorting to taking loans and debts again to avoid possible financial troubles.
About the author: Andrew has been writing about debt consolidation for 4 years. He likes helping people with debt management and bad credit loan tips

How You Can Negotiate a Reduction in Credit Card Balances?

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Credit card debt is a common problem shared by many millions of people. While some people who carry credit card balances today are able to comfortably manage to pay the minimum monthly payments on their credit card accounts, other people find it very challenging to make minimum payments on their debts each month. In years past, bankruptcy was considered to be the most viable solution to significant debt issues, and this was a solution that provided the greatest level of debt relief. Now, however, debt negotiations may provide you with more significant and lasting results.

How Debt Negotiation Works
Through the process of debt negotiations, you negotiate a reduction in outstanding balances with your creditors. Creditors of unsecured debts understand that they have very little ability to collect on your debts if you do not have the ability to pay. With an auto loan or a home mortgage, when parents are not made, the car or home could be repossessed. With credit card debts, credit card companies may send your account to collections, but they cannot take property or assets away from you. Because of this, they often are very willing to negotiate a reduction in balances with you if they believe it will help you to pay them back at least some of the money you owe them.

Debt negotiation can be accomplished in one of two ways. First, you can consider negotiating debts yourself, or you can consider hiring the services of a professional debt negotiation company. Negotiating with your creditors on your own can save you money. However, you should be aware that the best negotiation results are usually experienced when negotiating skills and strategies are put to use. Further, understanding debtor rights can also help to improve the results you enjoy from debt negotiations.

Professional Services
While negotiating with creditors on your own may provide some results and may save you from having to pay the fees of a professional negotiation service, often the results enjoyed by hiring a professional debt settlement and negotiation company are well worth paying for. In some cases, professional negotiators have been able to reduce debt balances by thirty or forty percent, if not more. The results will vary from person to person, and there is no guarantee that any results at all will be enjoyed through this process. Some of the top companies that you can choose to work with offer a fee based on results. This fee structure helps to ensure that you pay for tangible benefits you receive as a result of using a negotiation company’s services.

Debt negotiations may still result in a negative event on your credit report, just as bankruptcy does. However, the overall benefits of negotiations are improved over bankruptcy in many cases. In addition, the severity of negative event on the credit rating is generally reduced. Because of this debt settlement is a great option to consider for a quick reduction in credit card balances. By reducing credit card balances, monthly payments become more manageable and remaining outstanding balances can be paid down more quickly.