When you’re facing bankruptcy, you can feel the cold, hard, and taunting surface of rock bottom, and that just might be the case for most. Not for you, though. Your credit may be tainted with this record for quite some years and affect your future transactions, but that shouldn’t be an invitation for hopelessness. In fact, if you truly feel this is the lowest you’ve been, make it a point that you don’t go anywhere but up from that point. So, now that you’re declaring bankruptcy, here are a few things you can do:
Start a Budget
This can be daunting and difficult, especially if you haven’t done it before, but it’s simpler than most make it seem like. There are two basic principles for this activity, and they are:
• Don’t spend money you don’t have.
• Don’t spend more than you have.
So, for starters, you should be honest with yourself and recall your spending habits. Analyze your tendencies towards money, and take note of them. Remember that you don’t have as much financial freedom as you used to, so the sooner you accept it, the better. Then, make a list of all the things that are vital to you and your family’s survival, especially anything that can get you down under if you don’t pay the monthly dues.
Finally, don’t just have a budget. Work with it.
Keep your bank balance at a safe and stable amount, and only withdraw the money that you need. Avoid credit cards if you can. When you can see the physical material of money, it gives a different effect on spending. This will make you more aware of how much a few bucks can affect your expenses and your entire budget. With your situation, you now know how it feels to how to lose money. With this habit, you will know how it feels to have no money, and this can help you stick to your budget.
When you’re low on your finances, this is an especially vulnerable time because you’re either encouraged by others or enticed by the idea of MLMs or multi-level marketing – in simpler terms, get-rich-quick schemes. Understandably, anyone would want to get out of a tough spot and get back on their feet, but by all means, steer clear from these methods.
Some companies prey on people with less financial freedom by offering a deal that can pull them out of debt, but that is far from the truth. In fact, they even ask for money from you as a “fee” of being part of the marketing and demand you to buy their products in bulk. That, in and of itself, isn’t conducive to rebuilding your credit.
Make Your Bills a Priority
While you’re keeping an eye on your spending, make sure that the money you still have goes to all the bills that need to be paid. You already have damaged credit at this point, and it won’t do you any good if you miss out on any of these payments. Retain the positive remarks on your record by letting lenders know you are responsible with your money to avoid jeopardizing any future transactions.
We understand that this is a tough time for you, emotionally, mentally, and physically. This is a situation that will take a toll on a lot of aspects of your life, but it gets better. Try to get back on your feet first instead of crawling on all fours. Financial stability, at this point, should be your main goal, and we do hope that you can bounce back and reach it soon. Good luck to you!