What is the best part of bankruptcy? Of course, if you’re still thinking about declaring bankruptcy you might feel like there’s never any positivity to be found with the process of bankruptcy, but the truth is that you actually have a good life after bankruptcy. Think about it — once you declare bankruptcy and go through the process, your bankruptcy is discharged and you never have to really go through bankruptcy again. You don’t have to worry about the debt collectors, and you definitely don’t have to worry about your wages being garnished. Yes, your credit score takes a beating temporarily, but there are ways to fix that. After all, you have to start rebuilding your credit somehow. You will have a clean slate to work with. Also, you might surprised at how well your new creditors will work with you even through you’ve been through bankruptcy. They realize that you cannot declare bankruptcy again for 10 years, so it means that you will have to pay your debts again.
So, the question today is really how can you build your credit quickly after bankruptcy? The answer is definitely secured credit cards — they are a perfect way to rebuild your credit after bankruptcy because you will come to a point that you have some savings. You can always pick up secured credit cards — they are open to anyone that can make the deposit.
Deposit? Well, we hate to burst your bubble but the truth is that you will have to get a deposit together in order to get a credit card of this type. The deposit can range from $100 all the way up to $500, but it really is better to drop in as much money as you can. That will give you the most credit line possible.
Just because you’re getting a new credit card doesn’t mean that you get to go crazy with it. As long as you start thinking about the things that you really want in life, you’re not going to go crazy with your credit cards. Isn’t that what really put you into problems in the first place? It’s better to think sensibly about credit cards.
It might seem like it’s hard to build credit with secured credit cards, but there will come a point where it’s very easy to move forward. You see, what you’re actually building is trust with your new credit card companies. You’re going to come to a point where you will show that you can be trusted with higher lines of credit. That means that you will have more credit power and also a higher credit score.
Now, how did we come to this conclusion? Well, it’s simple: once you start paying your secured credit cards on time, you’ll be building your credit score. Yes, it’s not going to be overnight. However, after your first year of paying completely on time, you should start getting better credit terms. After your second year, you might even be offered an unsecured credit card or two again. That’s why it’s a good idea to get your secured credit card through a company that also has unsecured credit cards. This will let you easily “graduate” to a higher level of credit.
It cannot be stressed enough — you will need to make sure that you actually pay your credit cards on time. If you have the ability to do so, you should make sure that you pay for your credit card at least a week in advance. If you’re going to send it by mail, then you will need to make sure that you do it two weeks in advance. That is the best way to make sure that your payment will be received on time. Every credit card company is different, and that means that you will want to make sure that you actually look up the terms and conditions separately. Yes, we know that they’re very long most of the time, but the reality is that if you don’t know the terms and conditions, that’s not an excuse to use in a court of law. In other words, but using the card you’re automatically bound by those terms and conditions. Keep that in mind as you go along and everything will be just fine.
Bankruptcy is a process that can be pretty stressful, but you don’t have to go through the process alone. There are plenty of support groups where people have emerged from bankruptcy and started taking back their financial lives in a healthy and positive way. Seek these groups out online and get the support you need to make the same positive choices in your life.
While we’re on the subject of rebuilding your life after bankruptcy, make sure that you also take the time to save some money as well. A lot of the time you will come to the point where emergencies happen. However, is every “emergency” really an emergency, or simply the result of a lack of planning ahead of time. Car registration, for example, isn’t an emergency — you already know that it’s going to happen ahead of time, so why not budget the money? That will allow you to always make sure that you have these expenses covered.
Overall, the road to getting out of debt can be long, but it’s definitely worth it when you can start making other financial dreams come true — try it for yourself today!