Congratulations on your fresh start! Taking control of your debt situation can be the most rewarding and freeing feeling. Some of our clients are left wondering “What now?” after they file and receive their Bankruptcy discharge. This is a normal feeling, as you no longer will have the weight of all that debt and the burden it brings down on you. Here are some tips on how to ensure your financial success moving forward.

Credit Score 

While it may be tempting to dive back in with some new credit cards (you will be receiving quite a few offers), make sure you stop and remember that feeling of when you were overcome by all the debt before the bankruptcy. Credit cards can be a slippery slope that can derail your finances fast. If you are worried about your credit score and would like to raise it, the best bet would be to obtain a secured credit card. These are where you put a deposit of a certain amount, then the bank offers you a “credit card” with a limit up to that amount. It is much easier to obtain a secured credit card, as there is not a lot of risk for the creditor or bank. Use this card for normal expenses, that you then pay off each month, leaving about a 10% balance. Your credit score will start rising in no time!

Car Loans

It is always the best bet to avoid obtaining a car loan compared to purchasing a used vehicle outright in your budget. Many people get stuck in terrible car loans that have a huge interest rate that leaves them paying the creditor much more than the car is worth. Not to mention, new cars depreciate in value almost immediately once driven off the lot. If you get yourself on a healthy budget and save up, you can purchase a used, reliable vehicle outright and avoid astronomical interest rates!

Savings and Rainy Days

Many of our clients have never had the opportunity to create an actual Savings Account for those rainy days when it might be needed the most. It is important to have savings built up that could cover a large necessary expense or 2-3 months’ worth of bills like rent, utilities, etc. You never know what can happen in life, such as losing a source of income, covering a massive mechanic bill for your car, or any other surprise expenses. It is important to create a monthly budget that allows for you to set aside money to put into a savings account or some other accessible account that you don’t spend from. This will allow you to never have to worry about the scare of large, unexpected expenses again!

If you would like more tips on ways you can ensure financial success and freedom moving forward after a bankruptcy, be sure to reach out to your local Stockton Bankruptcy Attorney at 209-952-0355 to obtain a copy of Seth’s book “Life After Bankruptcy” today!

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