Getting Credit Repair After Bankruptcy - By: Paul McDermott, Posted on: 2007-07-31

You have made the tough but necessary decisions to get your finances in order, and have gone through the bankruptcy process and now plan on getting your credit back in order. Can you really do it and if so, how do you do it and how long will it take?

All is not lost if you have made some bad decisions with your credit. If you have declared bankruptcy, your slate is clean, but your credit score will suffer. By taking steps to improve your score, you will end up saving a lot of money if you get a mortgage or car loan.

It is not a good idea to immediately apply for unsecured lines of credit. You are likely to get rejected at best, which will show up on your credit history, and keep your credit score low. You might get accepted, but you will probably pay much higher fees and interest rates. One thing to consider is getting a secured credit card, where your credit line is determined by depositing cash into your account as collateral.

Credit repair after bankruptcy can take as much as ten years to complete. This may seem like an unfair amount of time to wait for better credit but people shouldn't forget that all of their debt was erased and this is a consequence of filing for bankruptcy.

How To Repair Your Credit After Bankruptcy

Now don't hit your computer screen, but now that you are starting over, it is a great time to get a realistic financial picture, and that includes making a budget. I know, it makes my eyes glaze over, but once I knew where my money was going, I could make my financial goals come true. Without it you will just drift and make no progress.

Secondly, be sure to pay yourself first. Put money aside so you cannot easily get to it. Then plan out your purchases. Sure, have a little cash for impulse buys, but if you stay disciplined, you can avoid most of them as you see your finances improve and you feel the sense of accomplishment and independence your are achieving.

To keep you out of trouble caused by impulse buying, try waiting a day before you make that purchase. Keep your larger goals in mind, feel the freedom from that feeling of suffocating debt problem and resolve not to get into that situation again.

Realize that you are more than your purchases. This may sound sort of strange when discussing financial problems, but I think it works. Your deeper happiness and satisfaction has nothing to do with what you own. And even Imelda Marcos was not buried with the hundreds of pairs of shoes she owned. As you find activities that bring true lasting joy, I think you will find that it will not include buying things. You will be spending less, be free from the debt burden of the past, and be repairing your credit after your bankruptcy.

Article Source: http://www.southerncaliforniarealestateagent.com/submit-real-estate-articles

Author Paul McDermott shares his experience with credit repair after bankruptcy and other credit and debt issues at Credit Repair Guide. Learn about his mistakes so you can avoid them.
Don't reprint the same version as everyone else. Get your own unique content credit repair after bankruptcy article here.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated