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