According to a recent study, Mississippi is in the top five to file personal bankruptcy. This is due to people living beyond their means and building up credit card debt to cover the difference. It is also due to student loan debt.
Filing a bankruptcy means that you have to build your credit back up from the bottom. It can be done through some useful tips and tricks. Bankruptcies can stay on the debtors’ credit report for seven years, but this does not mean that it is going to ruin your credit for a long time. It just means that you were low, and you are now back down to zero. You would have to raise the score again by starting from scratch. If you do not want to wait the whole seven years and want to make the right steps to move forward, then use these tips to get the ball rolling.
Always stay current on your payments
If you’re late on those payments, this can run the risk of having a lower score than you normally would. By staying on top of all the payments, you can ensure that the score continues to rise with each on-time payment that you make. All payments that are made on time are a good sign. Those that are late are reported to the credit bureaus as a negative mark. This includes all payments, not just ones for credit cards.
Make an extra payment at the end of the year. When it comes to paying down any debt or staying on top of bills, make sure to pay off a little extra. This is always going to look good on the debts that you owe. You want to make sure that you stay away from having to file for bankruptcy ever again, so staying on top of everything is the sure way to go.
Refinancing might be a great option to go with, as well. If you want to work with someone that you owe money to, then you want to make sure that you can have an affordable payment you can meet every month. Refinancing can help with this.
Use credit cards wisely
Even if you went through a bankruptcy, you can still obtain a credit card. You want to make sure to start off with a low amount and continue to pay it on time, every time. Never max the card out, as this can cause more problems in the long run.
Keep your balances low and make sure to pay them off within a month. This is what is going to keep your credit score increasing with time. Secured credit cards are usually the best way to go immediately after a bankruptcy.
Make your debt consolidation payments on time
Never miss your debt consolidation payments, as they are going to make a difference when it comes to the debt you need to pay off. When you miss them, this can cause the debtor to take action. You need to make sure that you also have an emergency fund on top of this. Being safe and having the right money skills can help everyone out when it comes to being prepared.
Always rely on professionals
Speaking with professionals regarding bankruptcy and other debt related matters is the best way to go. It is important that you speak with a reliable, professional attorney near you to gain more information on the matter. Want to learn more about bankruptcy? Read about our bankruptcy services and find a list of bankruptcy FAQs here.