Now, it’s not quite an unexpected earthquake, but bankruptcy can sure rock your world! 🫨📉
It’s a pretty extreme solution but to get out from under that rubble pile of debt, it may be your only choice. 💸 The good news? Getting back on your feet isn’t as hard as you may think! 😅
Here’s Five Fast Facts on how to bounce back after bankruptcy:
- 👀 Check Yo’Self - After your bankruptcy is finalized, check your credit report. Use a site like AnnualCreditReport.com to see results from the three major bureaus. Next, confirm that all of the debt included in your bankruptcy filing is noted and nothing’s showing as unpaid. If you find any errors, file a dispute.
- 🛠️ Brick By Brick - To start building credit again, apply for a credit card. Because of your bankruptcy, applying for a secured credit card might be your best bet. Check out this article for recommendations. Once you get your card, keep that balance low and pay it off every month to boost your score.
- 🗃️ (Don’t) Burn After Reading - While you’ll probably want to burn them in a bonfire, it’s best to keep your bankruptcy documents in a safe place. You might need them later when you apply for credit in the future or have to prove to a collection agency that your debt was discharged.
- 🙅 Scram, Scammers - Keep an eye out for scammers. All kinds of subprime lenders (payday loans, pawn shops, etc) might reach out to you to offer a loan. The catch? The interest on these things is always through the roof. Steer clear of credit repair companies claiming they can make your negative history disappear (they can’t). Save your pennies and start an emergency fund instead.
- 😌 Chin Up, Buttercup - There’s a lot of shame and stigma around bankruptcy, but don’t let it get you down. If you were in a jam, look at it as a lifeline and a much needed reset. Plus, recovering can be speedy if you do everything right. One study showed that over half of those who filed for bankruptcy got their credit score back up to 640 or higher after just one year!
🔥Bottom line: How do you get that credit score back up? Always pay your bills on time and use less than 30% of your available credit. Starting and sticking to a budget will help you, too. Not the nerdy Excel budget type? We got you fam. Here’s a lazy approach to personal finance.
Recovering from bankruptcy?
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