While bankruptcy may have started in the first place may not have been due to the fact that you have spent too much, saving money after filing is perhaps the best decision you can make. Although it may seem obvious that it is unwise to overspend after bankruptcy, many are making the mistake of falling into old shopping habits with clean credit cards. and more cash.
You may have trouble getting a loan or a credit card. It takes time to replenish credit after bankruptcy. But this can be done and you can start buying early. The only problem is that some people take this to the extreme. Saving money is the answer. In this article, saving money can be a challenge, but it is a challenge to take.
Do not make the same mistake …
What brought you to the problem that led you to declare yourself bankrupt? In other words, what did you spend money on, what medical expenses, what interest rates did you pay, and what problems did you have to fight? Sometimes it's not your fault if you've declared bankruptcy. You may have suffered an injury, received a $ 40,000 medical bill and just drop it off.
The reason you filed does not matter because you should save money after filing for bankruptcy under Chapter 7 or Chapter 13. The more you save, the more you are likely to avoid bankruptcy a second time.
Protect what you always have
You probably have assets and properties that you want to keep. Maybe you declared bankruptcy to protect them. Now, with the money you have saved and earned, put it in the bank account. Instead of spending your checks for expensive dinners and other items, you can protect your home, car and other assets. If you encounter problems again, you may not be able to file for bankruptcy a second time (you must wait 8 years for Chapter 7 and 6 for Chapter 13). So, if you want to keep what you have, save it.
Pay all bills early
A bad habit that many of us take is to pay the bills on the days they are due or to pay late fees because we have forgotten. This must stop if you really want to save time, money and headaches, without forgetting to rebuild your credit. In order to replenish your credit, you must avoid delays on bills. The best way to solve this problem is to pay for it sooner.
Build your credit
As I just said, the more money you have, the more you have the opportunity to pay your bills on time. If you save more, the logic will allow you to replenish your credit. If you save money and pay your bills on time, including credit and loans, you rebuild your credit in the best way possible. You will then be able to get a new credit card or loan when you need it. It's a big advantage that many neglect.
Yes, spending money can be fun. And when you have a job, you deserve the right to spend money the way you want. But true financial freedom comes when you save. You do not need to withhold certain bills to pay your mortgage. You do not need to take the phone calls from creditors all the time. And there is no reason to worry about a second bankruptcy if you have saved money. Bankruptcy itself frees you of debts. Enjoy this benefit.