Bankruptcy, Debt Consolidation :: How To Repair Your Credit After Bankruptcy

How To Repair Your Credit After Bankruptcy

You have made the tough but necessary decisions to get your finances in order, and have gone through the bankruptcy process and now plan on getting your credit back in order. Can you really do it and if so, how do you do it and how long will it take?

If people have had poor actions that have led them down the path of bankruptcy, all is not lost. Credit repair after bankruptcy is not only possible, it's critical for the individual to accomplish or they will continue to only tread water. Bankruptcy allows people to have a new fresh start by wiping all of the debt away and begin to project a positive credit history.

One thing you will want to consider is getting a secured credit card and not try to get unsecured credit lines. This is because while your credit score is low, you are likely to get rejected, and this will also show up on your credit history and keep your score low.

You can expect your credit score to rise gradually and get back to normal range within up to ten years. That is if you do not get into more debt trouble and take some steps to improve your score. It may feel unreasonably long, but unfortunately credit is important in today's society and we don't have a lot of control over how our scores are determined. And you can be thankful that your debt has been eliminated by bankruptcy, so you have a second chance you wouldn't otherwise have.

How To Repair Your Credit After Bankruptcy

Now don't hit your computer screen, but now that you are starting over, it is a great time to get a realistic financial picture, and that includes making a budget. I know, it makes my eyes glaze over, but once I knew where my money was going, I could make my financial goals come true. Without it you will just drift and make no progress.

Next, put some money aside via automatic deposit for emergencies and future planned expenditures like a house, college for your kids and retirement. Then plan your purchases and avoid impulse buys. If you really have a weak moment and buy something unplanned, use cash. Remember, you don't want the suffocating feeling of drowning in debt again.

If impulse buying is a problem, develop a way to stop this type of impulsive buying. One way to develop good spending habits is to wait a day and see if it's still something that's necessary to buy. Many times, just waiting a day changes impulsive spending. Credit repair after bankruptcy will help people to become stronger financially and less likely to fall into a new credit problem.

Realize that you are more than your purchases. This may sound sort of strange when discussing financial problems, but I think it works. Your deeper happiness and satisfaction has nothing to do with what you own. And even Imelda Marcos was not buried with the hundreds of pairs of shoes she owned. As you find activities that bring true lasting joy, I think you will find that it will not include buying things. You will be spending less, be free from the debt burden of the past, and be repairing your credit after your bankruptcy.

By: Paul McDermott

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Paul McDermott reveals more about his experience with repairing credit after bankruptcy and other credit and debt issues at Credit Repair. Learn about his mistakes so you can avoid them.
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