You may have had to file for bankruptcy because of events that have affected your financial circumstances. Bankruptcy, however, is not the end.
Deciding to file for bankruptcy is not easy. But many people have had to and are now able to care for their finances stably. You can dust yourself off and get back on your financial feet even after bankruptcy.
All damage done to your credit by the bankruptcy process can be healed. Chapter 7 bankruptcy eliminates all of your debts, and some of your assets. Afterwards, building up your credit again is dependent on you paying your bills in a timely fashion.
You must care for the assets that you have been able to retain responsibly. If you still have your home, work on proving your ability to pay for bills on time by making all of your payments to the local utility company when they are due.
Secured credit cards, credit cards that require that a deposit be made by the individual applying for the card, can also help you reestablish credit. As you use your secured card, you will build your credit and eventually be able to qualify for an unsecured card.
Keep just one credit card. And don't charge purchases on it needlessly. Simply having a credit card that can be used in emergencies is a way to build back your damaged credit.
Learn to pay in cash. Force yourself to refrain from making purchases without having the cash you need to pay for them. Paying in cash will also help you strengthen your bank account. This also prevents future debt problems, since bankruptcy often comes as a result of spending without having the cash necessary to do so.
Plan to succeed. Since you have already experienced bankruptcy, you know you don't want to go through the process again. Establishing a good savings plan that includes an emergency fund will help you prevent any future need to file for bankruptcy. Credit card payments shouldn't present any kind of problem after having had all of your debt eradicated.
When you do get a credit card again, you can expect to be bombarded with offers from credit card companies. They will do there best to get your business, but you can resist them if you are determined to stay out of debt.
Learn to live within your means. This requires that you be prepared for the unexpected. Credit counseling classes or meetings with a financial advisor can be helpful, since they will provide you with great tips on how to maximize your savings and care for your expenses responsibly.
Financial advisors might also help you by forming a savings account that you can later use to invest. Since retirement often continues for upwards of twenty or thirty years, saving and investing wisely in essential. While you work at rebuilding your credit, keep your focus on saving for retirement.
Bankruptcy is not the end by any means. Recovery is possible, but only with hard work, patience, discipline, and time. If you stay with your plan, you will be able to enjoy a financially secure future.
Is debt consolidation the right solution for your credit problems? Find out how it can affect your financial health at the Debtopedia website. Visit http://www.debtopedia.com for more information and to get a free copy of my report on credit card debt.