A Guide to Financial Success After Bankruptcy

Your first step after bankruptcy should be to set a budget. By setting a budget, you can ensure that you don’t live beyond your means. There are a variety of tools that will help you balance your expenses, including good ole pencil and paper. Or, there are many smartphone apps and computer programs that can assist you when balancing your expenses. We also recommend creating a savings account, if you don’t have one already, in case of financial emergencies. Rebuild Your Credit You can rebuild your credit score after declaring bankruptcy, and we recommend doing so for financial decisions you may make later in life. Many people achieve a positive outcome here after just two years. To rebuild your credit, focus on paying your bills on time: your payment history accounts for 35% of your credit score. These timely payments highlight that you are financially responsible. You may also find it beneficial to open a secured credit card. On-time payments on your credit card can be a great proof of financial improvement and success. Some people find credit builder loans can also be beneficial here, but they are definitely not necessary.