Bouncing Back from Bankruptcy
Recovering from bankruptcy does not have to be a difficult journey. Learning what to do next helps you to rebound with grace and ease of mind. One of the ways to get back on track is to start with a plan on how you are going to handle your finances moving forward. To help with not repeating mistakes; note the mistakes made in the past by the way you spent money and why. Also, note any bad habits that you know are bad and any habits you learned were bad along the way. Facing your mistakes and bad habits allows you to move past them so you can create new good actions for the future.
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Secondly, ensure you are not late on your monthly bill payments as you work on rebuilding your credit and financial status. This will show creditors that you have improved your money management behavior as certain monthly bill payments are now included in the newer scoring models. When you show consistent on-time payments for at least six months to a year, lenders will be more apt to work with you on loans and offering credit. Paying bills on time is a good money management habit and carries the most weight on your credit score. Changing your daily financial actions and managing your credit are two effective ways to bounce back from bankruptcy.
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Finally, learn to live within your current means. This concept seems to be the hardest thing for people to do since the 1950s. There is no shame in living within your means and making your life work for you and your family. Do not let FOMO (Fear of Missing Out) control your financial destiny. Your new financial plans and roadmap on how to achieve these goals should keep you focused on the real prize of relieving financial insecurity and building your own personal wealth. The time you spend creating a better financial life will be worth the effort and before you know it, you will have achieved your goals.
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Written By:
Michelle Alexander
AJM Financial, LLC.