Bankruptcy lawyers in New York, often come across people/families who become victim of the recurring spiral of financial crisis only because they do not know how to get out of debt. Truth is that most people are unaware of how to start anew after a bankruptcy episode – they tend to repeat their past mistakes over and over making it difficult for themselves to emerge out of their ever-persisting hardships.
The road to recovery is difficult and it requires solid perseverance and dedication to accomplish. But from where we see it, who wouldn’t want to live a debt-free life without having to worry about due dates and interest rates?
These steps can help you build a post-bankruptcy life that is all that!
Look For Your Mistakes
Take a close look at what led you to declare bankruptcy. Was it unemployment, overspending, or something else that made you lose complete control over your finances? This can help you determine the weaknesses on your part that can potentially lead to another case of bankruptcy if not set right. Once you have the reasons figured out, look for possible solutions that can help you mend your ways for the future without repeating the same mistakes.
Look on the Brighter Side
Yes, declaring bankruptcy will ruin your credit score and also put you at the risk of losing your property (not always though), but the good thing is that you’re debt free. You do not have creditors hogging you for money and you can start over. It is important to maintain a positive outlook on the whole situation to be able to get back up and build your life again.
Map Out a Plan
Your aim should be to make the most of your available finances. It is therefore important to set small achievable financial goals. These may include setting weekly limits on your spending, saving a certain amount of money on a monthly basis, paying off debts (credit card), limiting credit card usage and/or restricting your spending to just one credit card. However, it is important to concentrate on achieving one goal at a time rather than rushing into all of them at once and creating a financial hodgepodge for yourself again.
Try and Meet the Deadlines
With most of your debts being discharged on declaring bankruptcy, there will obviously be lesser due dates to worry about. At the very least you will have monthly bills that include utilities and other monthly services that you acquire. Practice caution to pay these bills on time in order to prevent late payment surcharge that can be an added financial burden for you in this recovery period. Plus, once you get into the habit, it will last a lifetime not having you fret about timely payment of bills in the future.
Work on Building Your Credit Score
After declaring bankruptcy your credit score experiences a crash down. This is a good time to work on improving it. Begin with regulating your credit card transactions and payments to establish a good name for yourself. Obtaining a secured credit card at your local bank is one of the best ways to begin. You could also research online for sure shot ways of building credit or get in touch with reliable professional consultants who can help you design a healthy credit building strategy.
Take a look at our article on Credit Card Mistakes for additional information on building your credit. Work your way up the financial ladder step by step to ensure that you and your family will live a content debt free life in the future.