After a Massachusetts bankruptcy lawyer assists you with a bankruptcy, there are some steps you can take to begin rebuilding your credit.
1. Rebuilding credit and avoiding future debt problems requires you to live within your means. One step you can take to accomplish this is to develop a reasonable budget. The easiest method is to plan your budget on a monthly basis. When you have a budget, you will be less likely to overspend, or to rely on credit when it is unnecessary.
2. Pay bills in full, and on time. Not only will this eliminate late fees, it will help rebuild your credit by showing you are responsible with your finances.
3. Obtain a secured credit card. The best approach is to apply for a card at the bank where you have a checking or savings account. When you deal with the same bank on a regular basis, they may eventually offer you an unsecured credit card. However, you must make sure the bank reports your transactions to the three major credit bureaus.
4. Apply for a gas or retail credit card with the lowest start-up fees. Similar to your secured credit card, be sure all three major credit bureaus will receive the information about your transactions. In addition to paying your balance in full and on time, you must also make a point of using your credit wisely. When you are rebuilding your credit, it is not the time for shopping sprees, or to charge products or services you cannot otherwise afford.
5. Obtain copies of all three credit reports. While you can receive these reports free of charge, doing so once per year is not enough when you are serious about rebuilding your credit. You need to know everything on your credit report is complete and accurate. When you check your reports regularly, you will be able to dispute any questionable activity immediately. If you find activity that does not appear to be valid, do not hesitate to obtain information about it. You will need to contact both the creditor and the credit bureau.
Many people make the mistake of assuming bankruptcy solves all of their financial problems, and that their credit will automatically improve. This mistake can lead to further financial issues, and even the need to apply for another bankruptcy in the future. These five simple steps can help you avoid these problems.
The bankruptcy process itself can be very stressful. You do not want to make a mistake that could impact your financial future, and even your personal life. If you feel you need help with these steps, do not be afraid to ask your Massachusetts bankruptcy lawyer for advice. Whether your concerns can be addressed with some basic advice, or whether you can benefit from credit counseling, asking for help when you need it is the way to prevent future issues. You can start to rebuild your credit, reduce your worries about finances, and have peace of mind. Your financial future can be secure.