5 Helpful Tips To Recover From Bankruptcy
Bankruptcy is your last resort when it becomes increasingly difficult to pay for even the basic amenities such as medical expenses and credit card bills. Your credit rating might go for a toss but you are not alone in this turmoil. Numerous people have filed for bankruptcy in the past few years. It will definitely take you a while to recover from its negative impacts and there is still a ray of hope as you can take measures to improve your credit score. The black mark will stay for up to 7 years; however, you can utilize this period to improvise your ratings in the long run. Follow these simple steps to make a quick come back.
- Update your credit report- Now that all the procedures for filing bankruptcy have come to an end. It’s time to take recovery measures. Once the entire procedure subsides, you should make an effort to update all your credit reports. Please double check whether each and every activity on your account is updated. The three most important reporting agencies are Experian, Equifax and TransUnion. They are the right agencies whom you need to check with.
- Research for the reasons- You have been through tough times and you can’t blame anyone but yourself for this major disaster. However, it is better to spend some thought as to how it happened in the first place. The reasons could be anything. You might have spent money lavishly. Now is the time to take some effective steps to recover and untangle the complications. You can control your expenditure or start hunting for a good part time job for instance.
- Avoid unjust deals-You are already caught up in a mesh so you don’t want to put yourself in further trouble. So, keep a safe distance from those malicious lenders who will try to lure you into debts. You will be offered payday loans but you also need to check out the interest rates. If it is too high then there is no point in opting for such deals as you will fall deeper into debts.
- Making prompt payments- One of the key reasons of bankruptcy is, failing to make payments on time. Don’t repeat this mistake again. Start making all your payments which will definitely improve your credit ratings. This will help reduce additional expenditure like late fees and financial charges being added to your account. Your credit score can improve by 30 percent with the above measures.
- Purchase a new credit card and use it to improve your credit rating-Approach your bank and take necessary steps to purchase a new secured credit card that can pull you out of bankruptcy. Make sure that your payment history is reported to the credit bureau. Also, make it a point to use less than 50 percent of the credit limit that you have.
Follow these simple steps to pull yourself out of bankruptcy and avoid facing such scenarios in the future!
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