Filing for bankruptcy is a big deal, and it’s important to take your new financial future seriously. Once your bankruptcy is complete, it’s important to ensure your financial slate stays clean and you build your credit back up. Here are 3 common post-bankruptcy mistakes to avoid.
1. Not Creating a Rainy-Day Savings
For many people, emergencies are what contributed to filing for bankruptcy. Hundreds or even thousands of dollars in unexpected expenses can come out of nowhere when a family member falls ill, the car breaks down, or a natural disaster occurs. Don’t get caught up in the idea that you don’t have the money to contribute to savings. Make savings a priority and cut other expenses in order to be able to put as much money back in savings as possible. Experts recommend having at least 3 months of expenses put back into savings.
2. Not Getting a Secured Credit Card
After filing for bankruptcy, you may be leery about taking out another credit card. However, a secured credit card is the primary way you can build your credit after bankruptcy. This type of card requires you to put down a deposit, usually a couple hundred dollars, and only extends you a credit line in the amount of that deposit. It’s almost like a “prepaid” card, but no other prepaid card functions like a credit card and also reports to the three major credit bureaus every month.
3. Not Slashing Your Budget
The most basic way to look at bankruptcy is that a person who has to file has simply spent more than they earned. If you continue to do so after filing for bankruptcy, your bills will accumulate again. Thoroughly review your budget and figure out where you need to spend your money vs. where you are actually spending it. Get help from a financial adviser and create a budget that allows you to earn more than you spend.
Need Bankruptcy Help? Contact an Attorney Today
If you are overwhelmed with bills and are struggling to keep up, or have recently filed for bankruptcy, you have a variety of options available to you. Contact the Law Office of Howard Tagg to learn more about how bankruptcy can help you start over with a clean financial slate and how you can keep that slate clean after your bankruptcy is complete. Call now for a consultation at (903) 581-9961.