There’s no doubt that are some substantial financial consequences in filing for bankruptcy, and there’s no question that your life will go through some considerable changes. If you’re in this scenario, don’t be alarmed. The tough economic times experienced today means that more and more people are declaring bankruptcy. In fact, there are about 20,000 Australians every year that declare bankruptcy. So rest assured, you’re not alone.
Instead of dwelling on the past, it’s essential that you look towards the future and attempt to recover as best as possible. Bankruptcy doesn’t mean the end of the world, it just means that some alterations need to be made to secure a bright future for you and your family. So here are a number of simple strategies that you can use to best recover after declaring bankruptcy.
It’s typical for individuals who file for bankruptcy to experience feelings of failure, self-loathing and regret. Though it may seem natural have these thoughts, being bankrupt is the result of simply another mistake that all of us make as humans. You should stop punishing yourself and look towards the future. Bankruptcy is the first step towards financial freedom, and recovering from a bad credit rating is much easier than you think. The longer you surrender to these negative feelings, the longer it will take to recover. Dealing with your financial troubles is the first step in overcoming them, so you’re already in a better position than you were prior to filing for bankruptcy.
It’s paramount that you examine the reasons why you became bankrupt to make certain that you don’t make the same mistakes again. Declaring bankruptcy offers you a second chance to get your finances in order, so it’s best you make the most of it. While there’s possibly a number of reasons why you declared bankruptcy, all of them probably relate to bad spending and borrowing habits. So it’s a good idea to produce a list of two or three things that led you to filing for bankruptcy and devote yourself to not making these oversights again.
Make a budget
After you’ve recuperated emotionally from bankruptcy, the next step is to make a practical and attainable budget. You’ll want to evaluate your earnings and expenses carefully, and develop a way to save money while still paying all of your living expenses. Even if it means that you downsize your house or forego some luxury items, becoming financially healthy is your main priority. There are some simple ways to save money, for instance eating at home as opposed to eating in restaurants and revoking your gym membership in favour of walking to work. Remember to include in your budget an amount for unforeseen expenses.
Pay your bills on time
The first step in mending your bad credit rating is to make sure that you pay all your bills on time. Though this won’t boost your credit rating immediately, it will ensure that your credit rating doesn’t drop any further. You might want to set up automatic bill payments with your bank to guarantee that you don’t overlook any payments. This will demonstrate to lenders that you’re financially responsible, and the longer you do this, the better your credit rating will get. This is considered as the single, most effective action you can take to restore your credit rating.
Increase your income
If you haven’t currently got stable employment, now is the time to do so. Consistent income over time will not only improve your credit rating but it will permit you to increase your liquid assets, providing you with more options. If you’re in a position where you can get a weekend job, you should seriously consider it. Or take a look at your hobbies and attempt to come up with a way to increase your earnings by doing something that you enjoy. Cash is king when you’re bankrupt so anyway to increase your income is a fantastic idea.
Although filing for bankruptcy is never an easy decision, it is the first step in dealing with your financial issues and learning from the past so you can enjoy financial freedom in the future. It’s vital that you review the reasons that brought about your financial hardships to ensure they don’t happen again. Steady employment and paying your bills on time will improve your credit rating gradually, and sticking to a budget is very important. If you’re thinking about filing for bankruptcy and need some advice on your options, get in touch with Bankruptcy Experts Toowoomba today on 1300 795 575 or visit www.bankruptcyexpertstoowoomba.com.au