Getting Credit Repair 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.

It's probably best to not try for credit for awhile except maybe a secured credit card. The reason is because the credit score is low and there will be turndowns showing on the credit report. It will stay low as long as you continue to try to get new credit and get rejected. It is better to pay cash for needed things unless there is an emergency.

Even with good use of your finances, it can up to ten years to get your credit back to a normal level. It may seem like a long time, but the benefits can be tremendous in terms of money saved. And when you consider that you have just had your big debt balances erased by bankruptcy, this is still a better situation than before your bankruptcy.

What to Do 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.

The second thing that people can do is to change their lifestyle. This means no buying on a whim. Really plan your purchases. This includes paying yourself first, by putting money away for your future financial goals like a house, college for your kids, and retirement. Then live on the rest. You can have an amount for impulse buys, but use cash only for them.

To keep you out of trouble caused by impulse buying, try waiting a day before you make that purchase. Keep your larger goals in mind, feel the freedom from that feeling of suffocating debt problem and resolve not to get into that situation again.

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.

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Author Paul McDermott reveals more about his experience with credit repair after bankruptcy and other personal finance lessons, some learned the hard way, at Credit Repair Guide.
This and other unique content credit repair after bankruptcy articles are available with free reprint rights.

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