To live in America without debt is fairly atypical. We finance our homes, vehicles, degrees and often, daily necessities. But what may seem like normal, financial gain can become overwhelming when you realize your paycheck no longer covers your minimum payments toward what you borrowed.
In some circumstances, filing bankruptcy may be your best option to regain control of your financial situation. Yet, you might hesitate to file out of fear that you won’t recover. However, there are certain things you can do to reestablish yourself after bankruptcy.
Be honest with yourself when you set new goals
After filing bankruptcy, it’s important to take a long, hard look at your spending habits. This can help you not only figure out how your financial situation got off balance in the first place, but also prevent history from repeating itself.
Whether you suffered from unexpected medical expenses, had a significant change in employment or charged too many things on your credit cards, there is hope.
Some things you can do to reestablish yourself after bankruptcy include:
- Determine a budget which allows you to both cover your expenses and save for the future
- Limit your spending to what you can afford (without borrowing)
- Make your payments on time
- Rebuild your credit through making small purchases on a secured credit card, paying off the entire balance by the due date each month
Filing bankruptcy is a personal decision that often comes with varying emotions. However, if you are struggling financially, you might be wise to explore your options to determine whether taking that step is necessary for getting a fresh start.