If you have recently had your debts resolved through bankruptcy you are probably celebrating your new path to a bright financial future. In fact, you are now in a unique position to really take charge and make the best of the years to come. However, that doesn't come overnight. There are a few steps you need to take to ensure you make the best of your debt discharge in bankruptcy.
The first thing you need to do after a bankruptcy discharge is check your credit report. Many creditors are slow to report your newly resolved debt accounts to the credit reporting bureau. Request a copy of your credit report and check your account information. If you find any missing or old information contact your creditor to request an update. It is important that your credit report display the most recent information if you are to begin the process towards rebuilding your credit and establishing a positive credit history.
Once you have your credit report updated start thinking about your budget. It is more important than ever to actually sit down and put pen to paper with a budget. Write down all of your expenses from household bills, to gas and groceries. Create budgets for the unexpected like doctor visits and prescriptions, or a pair of shoes for the kids sports team. Having extra categories to account for the unexpected or out of the ordinary can help you stay on track. Set a number you can spend for each category and don't go over it. Create a spot for savings and move the money into savings at the first of the month instead of the end. Any money that is left over from categories not spent can go into the savings.
Now that you have your budget in order its time to start thinking about using or applying for new credit. If you have a credit account from prior to your bankruptcy that is still open and active, start with it before getting a new line of credit. Plan a small purchase and make timely payments (that stick within your budget) to pay it off in two to four months. After a few months of responsible purchasing and payments, shop around for a new line of credit. Remember that you are trying to rebuild your credit, not looking for a high limit card to make purchases. Find a line of credit with favorable terms and conditions. Again, plan purchases you can afford to repay in no less than six to nine months. Sticking with these strategies can have you on the road to great credit and a secure financial future.