After filing for
bankruptcy, there are several ways in which you can work towards rebuilding your credit and maintaining a good credit score.
1. Be sure to pay off your utility bills, car payments, and any other monthly bills you may have on time and in full. This may be the best way to improve your credit score.
2. Keep track of how much money you spend each month. Many people find it helpful to write down where their money is going to. In doing so, you can see where you are over spending or under spending, and you can adjust your spending habits accordingly. For example, if you see that you are spending a lot of money going out to dinner, then you can try to save money by cooking dinner for yourself at home. Cutting out just three restaurant dinners a week could save you an average of $50-$75 per week. That is enough to pay at least one of your utility bills.
3. Save money when you can. Having a savings account is a great way to protect yourself from financial ruin, should an emergency situation come up, whether it be a medical emergency, a family emergency, or an unexpected job loss. Having some money in a savings account can offset your medical bills should you become injured, or go towards paying your monthly expenses you should need to take time off from work.
4. Do not spend more money than you make each month. If you only bring home $2,500 a month, do not rack up $2,000 in credit card bills and promise yourself that you will pay it back later. Chances are, you will not be able to. If you see something at the store, ask yourself if you really need it, and if you really can afford it. If it is honestly something above your means, then simply do not buy it. Most likely you will forget about the item in day's time or less.
5. Pay for your purchases with cash or a debit card. This will help to prevent debt from accumulating and building up.
As you regain credit, it is important that you follow these steps to ensure you do not find yourself in the same situation you were in before filing for bankruptcy. In doing so, you can enjoy your new financial freedom while continuing to work towards a better credit score and a strong sense of financial stability.
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