After filing for bankruptcy, you may feel relieved to know that the most difficult part of the process may be over and done with. However, what you do after going through bankruptcy proceedings is just as crucial. As a bankruptcy lawyer like one from The Law Offices of Neil Crane can explain, the spending habits you make can help you avoid getting into another financial situation. Learn about the actions you should take in order to speed up your financial recovery after bankruptcy.
Create a Budget
Making a budget that suits your lifestyle and aligns with your goals is a good place to start. When you budget mindfully, you are more conscious of your spending habits and how you can improve them. People who plan a budget and stick to it are less likely to fall into debt issues.
Keep Track of Your Credit Score
Having a strong credit score allows you to get loans for cars, Generally, a good credit score to reach and maintain is above 650. You can obtain a free copy of your credit report from the three credit reporting companies: Experian, Equifax and TransUnion.
Make On-Time Payments
To keep your credit score healthy, make consistent payments on time. Your credit score is largely impacted by your payment history. When you make your payments, make sure you are paying over the minimum amount required each time so that you are paying off a larger portion of your debt.
Don’t Max Out Credit Cards
While having a credit card is convenient, you don’t want to go overboard. Spending over 30% of your maximum credit line can harm your credit. Stay well below the limit and only use your credit card for essential purchases or emergencies, not simply on things you want. Each month your credit card balance should be low enough that you can pay off the full amount.
Set up an Emergency Fund
You never know when a sudden emergency will strike. It’s best to be prepared as early as possible so you have access to funds when you need it the most. Even setting aside $100-$300 a month can go a long way.
Paying attention to these important habits now can save you trouble in the future. You want to make sure you are practicing wise money habits so that your finances stay in good health. Schedule a consultation with a trusted bankruptcy lawyer today if you would like more information about the bankruptcy process and ways to expedite financial recovery after.