In a lot of cases, bankruptcy is a one-time event spurred by something outside of your control. It could be medical debt, for example, or other unexpected costs.
But even in cases where you simply were spending above your means, this doesn’t have to be a consistent way that you live. After you go through the bankruptcy process, there’s a lot you can do to ensure that you avoid it in the future and have a positive financial outlook. This is why people refer to bankruptcy as a fresh start, which is probably exactly what you’re looking for. Here are three tips that can help.
Create a budget
If your debt was the result of accidentally spending more than you realized, it can often help simply to create a budget. This way, every time you go out to eat or head to the mall, you know exactly how much money you have to spend without getting into financial trouble. Make sure that you build some element of savings into your budget, as well.
Consider secured credit cards
After bankruptcy, you also want to build your credit score back up. You can do this by using secured credit cards that require a deposit. Eventually, the goal with a secured card is to build your score up high enough that you can access more traditional lines of credit, perhaps even things like mortgages and car loans.
Create a financial goal
In a lot of situations, people spend too much simply because they don’t have any goals or anything that they’re working toward. If you create a goal, such as saving up for a downpayment on a house, it can help with your overspending and it can also give you a brighter future.
As you go through this process, be sure you know about all of your legal options.