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You can re-establish your credit rating after bankruptcy

On Behalf of | Jun 2, 2022 | Chapter 7 And Chapter 13 Bankruptcy |

Millions of Americans are currently struggling to manage their living expenses. It’s a common misconception that people have to be reckless with money before falling into financial hardship, but this is far from the truth.

Medical bills, unemployment, family issues and natural disasters are just some of the more common reasons people can get into debt. If your debt was out of control, then you may have chosen to file for bankruptcy.

Bankruptcy will impact your credit rating initially. However, by following these simple measures, you can start to rebuild your credit rating.

Saving a little each month

Something you hadn’t been able to do before was create an emergency fund. It’s amazing how much you can save by putting a little away every week or month. If you’re in a position to do this after bankruptcy, it can benefit you greatly. This way, if you are hit with an unexpected expense in the future, you have a way to manage it without falling into debt again.

Making timely payments

The small things really do make a difference in terms of rebuilding your credit rating. By simply paying your utility bills and other obligations in a timely manner, your credit rating will begin to climb again. If you build up several months without missing or late payments, you’ll really start to see a difference in your credit rating.

Don’t be too hard on yourself

If you’re struggling with your finances, remember that you are not on your own. By exploring your legal rights and taking proactive measures, you can get your financial situation back on track.

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