Life After Bankruptcy - If You Don't Fix Your Credit Now, You'll Hate Yourself Later
The first thing to do, if at all possible, is to avoid bankruptcy. If you are falling further and further behind with your creditors try to call them directly and work out an arrangement that will work for both of you. Bankruptcy is rarely the best solution and it has long term negative effects.
If you have declared bankruptcy try to maintain ownership of a piece of valuable property; like your automobile, home, or a piece of land. If you can manage to hold something of value through the bankruptcy process you'll be much more ahead then if you didn't. With your valuable asset you can borrow against it using a secured credit card. You agree to put the asset on the line if you fail to pay your bill. Apply for one of these cards as soon as possible. Make sure you always pay the balance in full each month. That way you build your credit and avoid interest payments too.
Sometimes using an asset to get a secured credit card isn't an option. If this is the case, have a friend or family member cosign on a small loan or credit card with you. They agree to be responsible for any debt you have with the new account. You are putting their credit score and financial future at risk by having them sign with you. Be grateful and don't over borrow. Even a small loan or credit card will do big things for your credit.
Be prepared to build for two to three years before you try for a bigger loan (like a automobile). If you have diligently paid your balance in full each month you'll probably get a decent interest rate. If you already have a car or other large loan you can refinance to build even more credit and save more money. Bankruptcy and its negative effects stay on your record for ten long years. Just because you've declared bankruptcy doesn't mean all is lost. After a few years of on-time regular payments you should start to see better interest rates. Lenders like to see that you are making a serious effort and that you are no longer a risk. Try to get back on the map with any kind of positive credit history.
Credit cards are a great way to start. If you have problems with credit cards but still want to build your credit consider a prepaid card. These still report to the credit bureau and don't have the same temptation as regular credit cards.
With all of this just realize that it will all pass. Everyone has problems here and there so keep your head up. You can do it!
Related Tags: consolidation, debt, repair, credit, bankruptcy, cards, life, poor, history, fix
Additional Resources: Credit Cards to Rebuild Your Credit: Free Credit Tips
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- For Many People the Process of Bankruptcy Is Traumatic
Often times, bankruptcy is seen as being defeated. Many people have struggled for years and years t - How Long Does it Take to Recover from Personal Bankruptcy?
You're bankrupt. You're doing all the right things to improve your credit and recover from your bank - Help Me Understand Bankruptcy Court
The bankruptcy court is part of the federal judiciary system within the united states of America. It - 5 Solutions To Help You Avoid Bankruptcy
If you own a home and you need a lot of money to help with the bills and you don't want to lose your - Bankruptcy The Six Types Of Bankruptcy
Bankruptcy is not something that someone should run out and do unless much consideration has been do - The Collateral Factor On Bankruptcy Loans
Thus, it is a lot easier to obtain a secured loan after bankruptcy than an unsecured loan. Actually, - Filing Personal Bankruptcy UK
Are you battling with your debts and are feeling financially strained? Is filing bankruptcy uk the o - Bankruptcy- Credit Scoring Explained
So you have built some equity in your home, and your thinking about using that equity to refinance a - Beware Of Debt Relief That Conceals Filing For Bankruptcy
The consequences of such drastic solutions are long lasting and very negative and thus, you should b - Solutions To Help Avoid Bankruptcy
We all start out on our own financial journey in much the same way. We start out with a small loan,
Most viewed articles in this category:
- Finance Is Achievable Even After Bankruptcy!
There are certain loans provided by lenders who deal specially with applicants that feature a bad cr - How to Choose a Bankruptcy Lawyer
1. First and foremost, ask yourself, "Do I even need a bankruptcy lawyer to file my case?" If your - Considerations Before Filing Bankruptcy
Financial difficulties can occur in anyone's life. When you think financial difficulties are more t - What Are The Consequences of Filing For Bankruptcy?
Bankruptcy may be your quickest way of getting relief from your unbearable debt, but it is also the - Bankruptcy UK v. IVA UK
There are several solutions to unsecured debt problems in the UK. Many cases though will come to a p - Bankruptcy, Way Out or Deep Problem?
To begin to understand the real depth of filing for personal bankruptcy, we have here an interview w - An Inside Look At Bankruptcy
The most widely held misconception about bankruptcy is that it's the debtor's version of the "get ou - Are You Allow To Keep Your Credit Cards In A Bankruptcy
Many bankruptcy filers are wondering whether they are entitled to keep one or several credit cards f - Bankruptcy? Don't Get Messy With It
It is estimated that 5.4 people out of 1000 filed for bankruptcy last year and that this rate has be - Bankruptcy UK - What Is A Fast-Track Voluntary Arrangement
Locally to where I am based in the UK, it seems that fast-track VA's (FTVA) are fast becoming a comm