Filing bankruptcy can give you a fresh start and the ability to rebuild your finances and create better financial habits. When you remove the overwhelming debt and begin to make sound financial choices over time, your credit score will improve, and it will be easier to obtain creditworthiness for loans and large purchases.
Avoid Easy Credit Offers
Several offers will show up in your mailbox for “bad credit, no problem” loans that offer a very high-interest loan. You will need to practice discipline and not sign up for those offers and find yourself in overwhelming debt again.
You won’t get out of debt overnight, just like you didn’t get into it that way. Nor will your creditworthiness instantaneously improve. Making a long-term debt management plan and sticking to it is the best way to keep your finances in check and have money left over after each paycheck.
Getting a Loan
It is unrealistic to believe you will never need to borrow money again, if you need a new car, sending a child to college, or a home to live in. Once you determine a loan is in your budget, it’s prudent to shop around for the best rates. There are lenders out there that will compete for your business no matter what your credit score it.
Getting New Credit
Using credit responsibly will help you rebuild your credit scores and make the steady move towards a better credit rating with better interest rates. Paying your bills on time and avoiding those offers of “no credit no problem” loans, lenders will once again deem you worthy of reasonable interest rates.
If you are drowning in debt and need a fresh start, contact a qualified Houston bankruptcy attorney to discuss your situation and determine the best route for you to take.