After you have completed your bankruptcy case and you are looking forward to a fresh financial start, there are a few things you should be aware of. It is important to make good choices in the future to avoid getting into financial trouble again.
During the bankruptcy process, you had to attend two financial management courses. You probably learned the importance of making and sticking to a budget. Now that you are no longer in a critical situation with your finances, you should re-evaluate your budget and make any appropriate changes. Now is an excellent time to consider contributing to your savings account to cover the costs of any new financial issues that might get you behind again.
Beware of “loan brokers” while some are honest and look out for your best interest, there is a large number of these brokers that will offer you a loan with terrible terms so they can get a kickback from the lenders.
Avoid paying for an agency to give you a “credit repair” service. Your bad credit cannot just be cleaned up like that. These agencies are counting on errors on your credit report that can be removed, giving you a clean slate. If there are such errors, you don’t need to pay someone to challenge them, you can do it yourself for free.
Shortly after filing bankruptcy, you probably started receiving credit card offers in the mail. These usually come at a high interest rate, making it difficult to keep up with the payments. These credit card agencies are taking advantage of the fact that you can not receive another bankruptcy discharge for eight to ten years.
Watch out for lenders that offer “Bad Credit, No Credit, No Problem.” These companies take advantage of borrowers that think they will not pass a credit check. Again, you will be charged high-interest rates that make the monthly payments hard to make.
It is best to wait until you can get a better interest rate from these lenders. If you have proven to be a good candidate for credit by paying your bills on time, then you won’t have to wait for the entire ten years that bankruptcy could stay on your credit report.
If you would like more information about bankruptcy and how it can help you solve some financial difficulties, contact a Rio Grande bankruptcy attorney.