Filing for bankruptcy was the right move in your situation. That decision may have been the easy part. Now that most of your debts have been erased, you still need to confront the reason you were in this pitfall. That reason: your spending and your financial habits.
Overspending and living beyond your means got you in this position, and you realize that. It is time to grapple with those behaviors and come out victorious. You can do it. You must believe that you can accomplish this, eliminate those behaviors and gain new and more reliable ones. Post-bankruptcy promises to be difficult, but ultimately rewarding.
Track expenses, pay bills on time
Here are some of the recommended habits to consider adopting post-bankruptcy:
- Track your expense and create a realistic budget: In tracking your expenses, you discover where you spend your money. This will help you create spending priorities and show what expenses to eliminate. This is step one in frugality.
- Keep credit card spending at a minimum: Today, you need at least one credit card. Use it sparingly. Abiding by a cash-only rule with spending helps.
- A secured credit card may be the way to go: If you need a credit card, you can get one of these to help you rebuild credit. Secured credit cards are backed by cash deposits you have made into your account. The deposit is your credit limit.
- Pay bills on time: Making this a regular habit helps you prioritize.
- Begin saving money: Taken together, the above moves likely will help you build savings and an emergency fund of at least six months of your expenses.
- Regularly check credit reports: Doing so will eventually show the progress you have made as you seek to improve your credit rating.
Every well-thought-out step helps you in the post-bankruptcy process. Success and recovery operate in step, and then you are on your way.