One of the major fears many people have when going through the bankruptcy process is how they will ever be able to rebuild their credit. The process will take some time, but is certainly worthwhile. In fact, since many of the previous debts were settled in the bankruptcy, it will be much easier to work for a good credit score now than during the previous years of financial struggle.
There are certain steps that must be taken. Action is needed; don’t wait for time to take care of it.
* Put together a realistic, workable budget. There are many methods available, but one of the easiest for many people is the ‘envelope’ method. Figure out how much is needed each month for each separate expense (rent, electric etc.) and put that amount of money in each envelope each month.
* Use cash when shopping, especially for groceries. This tends to make people more conscious of what they are spending.
* Pay bills on time every month. This is very important. Recurring expenses, like the phone bill, can be set up so that the money is automatically withdrawn from the checking account. (If using the ‘envelope’ budget system, make sure that the money is in the bank before the due date.)
* Get a credit card and pay it off in full every month. Some people use the card only to pay one or more of their recurring expenses, accomplishing two things at once: using the credit card every month and paying the card off every month. (Read the fine print before getting any credit card; the card may advertise a low rate that will jump to a very high rate under certain conditions.) A prepaid card that requires money to be loaded onto it before use may be a much better option.
* At some point, try to get a small loan. Again, be very conscientious about making all payments on time.
* If these steps are followed, it is possible to have a credit score over 700 in less than two years.
Sean C. Paul Attorney at Law is an experienced Debt Settlement Lawyer in St. Louis, MO. He focuses his practice on helping his clients through the bankruptcy process so that they can rebuild their lives – and their credit scores. Anyone who has been thinking that bankruptcy may be their best solution should contact this skilled Debt Settlement Lawyer.
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