Life After Bankruptcy 8 Keys to Recovering Your Financial Well-Being in Johnson County, Kansas
1. Get Expert Advice
Although there are plenty of tips which can help generally, it's a good idea to go through every step with financial experts. They can discuss your individual circumstances with you and decide what's best going forward. Competent lawyers or advisors have years of experience and unrivaled expertise, so use it to your advantage.Whether you're considering a change of budget, a new bank account, or applying for a credit card, running these options by your financial advisors or lawyers will help you make the right choices to secure a sustainable financial future for you and your family. Be honest and open with your advisors. After all, it's their job to help!
2. Use a Secured Credit Card
Although you may not always want to use a credit card, they can sometimes be necessary. In today's technology-focused society, an increasing number of businesses are refusing to accept cash payments, so if you don't have a credit or debit card, you may find yourself struggling. Also, keeping a credit card and making payments on time is a vital way to restore your credit score.While some people wonder if they'll even be accepted for any credit card after going bankrupt, it might be easier than you think! Secured credit cards are directed at folks with a low credit score. The holder pays a cash deposit upfront, then receives a card with credit for an equal amount. It may be a few months before you can apply, so wait patiently.
3. Get Authorized on Someone Else's Card
If you need a credit card for those necessary spends but don't want to get your own, or perhaps can't get authorized just yet, there is another way. Some credit card providers will allow holders to register a friend or family member on their card, so they can use it for certain transactions. It will also help you establish a credit history and build up your credit rating.If you have a friend or relative with a strong credit rating, you could ask them to help you out in this way. They would need to send some basic details to their bank and make an application. After it's approved, you could receive your own card that's connected to the main holder's account, with spending limits set by the main account holder.
4. Start Up a Savings Account
Did you know that a significant portion of Americans can't cover a $400 emergency expense? Perhaps you've experienced this yourself. Your car breaks down leaving you unable to get around, or you need to visit the doctor and find yourself shelling out on co-pays. All manner of unexpected events can come up at any time, sending you into a financial tailspin.Open up a savings account and try to put a little aside, even if it's just a few dollars. It's best to think of money put aside for savings as spent. Consider $5 in your savings account exactly the same as $5 spent at the convenience store. When absolutely necessary, you can cover expenses using your savings. Even a small amount put aside will really help you feel secure.
5. Regularly Check Your Credit Score
Keeping track of your credit score is one of the best ways of monitoring your financial progress. It helps ensure that you're moving in the right direction and avoiding unexpected bills. What's more, it lets you know when you can move onto the next steps in your financial recovery, like opening a new bank account or applying for a credit card.It's also a fun and satisfying thing to do! Checking your score week by week and watching as it rises can give you a real sense of satisfaction, helping you leave the instability of bankruptcy behind. It's easy to check and there are plenty of resources available to folks in Johnson County, Kansas that will allow you to check your score easily. Find one that's right for you.
6. Stick to Cash When You Can
Although credit cards can be useful for rebuilding your credit and can be necessary for certain transactions, it's an excellent policy to stick with cash. We've all been there. You make a few payments on a credit or debit card, then check the balance and realize you've wildly overspent, perhaps even putting yourself into debt.Sticking with cash will help you avoid those difficult situations. Withdrawing all the money you need for your basics at the start of the week will help you keep track of your money. Let's say you withdraw $250 for basic expenses at the start of the week: then you pay for groceries, gas, and other essentials from that bundle. That way, it's impossible for you to go overdrawn.
7. Keep to a Strict Budget
It may sound obvious, but establishing a strict budget, then sticking to it, is the main thing you'll need to do to stay on top of your finances. Taking some time at the beginning of every month to work out just how far your money is going to take you is a great idea. This will help you avoid any costly slip-ups down the line.Be realistic. It's no use allowing yourself $50 for food each week if you know you won't stick to it. Also, be sure to allow yourself a luxury or two. There's no need to be absolutely spartan, it's just a matter of planning ahead and keeping everything moderated. Allow yourself a small amount each week for a few extras. If you don't spend it, add it to your savings!
8. Take Your Time
It's natural to want to repair your credit and get back to the way things were as soon as possible. That way, you can feel in control of your finances again. But while following sensible tips like these can help you get back into shape quicker, it's going to be a slow journey. Think of it like recovering after an operation. It's going to take a little time.It's important not to be drawn in by companies offering a super quick fix. Like anything worthwhile in life, doing a good job of restoring your credit rating is going to take the right amount of time and hard work. So if things are taking a little time, go easy on yourself and trust in the process. In a year or two, things will look very different.Wherever you are in the process, everything will run smoother with the help of experienced financial lawyers. Call Stockton & Kandt, LLC today for help alongside every stage of the journey. Here, clients are treated like family and get all the help they need to get their finances back on track.