You have just completed the bankruptcy process, and although it led to positive results and a chance to start fresh, you probably do not want to go through it again. That is why it includes mandatory credit counseling courses both before and after.
However, attending just two classes is not going to guarantee you are safe from another bankruptcy. Frequently review the following tips to ensure you are staying on track toward financial security.
Be wise with credit cards
If you got into credit card debt, you will need to change how you use your cards to prevent debt from accumulating. For inexpensive, everyday items, pay with cash or a debit card. For larger purchases, only use your credit card if the total is well under your limit and you can pay off the full balance on the next statement. This will also help you rebuild your credit quickly. Other payment options may be available to you for certain expenses to avoid the high interest rates that typically come with cards.
Save up for disaster
Many bankruptcy cases are not due to making financial mistakes, but experiencing unpredictable life disasters. You may have lost your job, or a child may have developed a disease that incurred numerous medical bills. Because these types of circumstances are out of your control, you should do the one thing that is in your control: establish a financial reserve. Save up money to use for emergencies, and do not touch it until then.
Is a second bankruptcy a possibility?
Life can throw you curveballs, and you may find yourself facing bankruptcy yet again despite your best efforts. Is it legal to file a second time? Yes, it is, but which type and how soon you can file will depend on what you filed for the first time and how many years have passed since the filing date.