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How can you recover from bankruptcy quickly?

On Behalf of | May 17, 2019 | Bankruptcy |

If you are an Ohio resident who is thinking of filing for bankruptcy, you are probably concerned about how this step will affect your future. While bankruptcy can make it difficult for you to obtain credit initially, do not despair. With the right approach, any financial roadblocks may be virtually gone within a few years.

An article in Forbes has clever advice on making a speedy recovery from bankruptcy. Action you can take right away is to sign up for free credit monitoring from a reputable company. This allows you to keep tabs on your credit score and watch it improve. You can make sure your accounts are being reported accurately and see the credit card and loan offers available to you as your finances get back on track.   

Once you are tracking your credit score, it will be time to rebuild it. There are methods to accomplish this relatively quickly. One way is by obtaining a secured credit card. To improve your credit, you will need to use the secured credit card regularly, pay off the entire balance every month, and have no late payments.

The purpose of the secured credit card is only to build credit and is not for general spending. To accomplish this, one suggestion is to set up automatic payments for one of your small monthly bills with the secured credit card. At the same time, set up the balance of your secured credit card to be paid off completely every month automatically from your checking account. Using the secured card in this very structured way builds credit without landing you back in crippling debt. Once your credit score improves over time, you can open a regular unsecured credit card with no annual fee. Switch to using the above method with the unsecured credit card to further build credit. Sticking diligently with this method can often propel you into financial health within a few years.  

Getting back on track after bankruptcy requires diligence and strategy, but it is easier than many people realize. Monitoring and rebuilding your credit will open a lot of financial doors. Combined with a budget strategy, your financial health can eventually be better than before in your life after bankruptcy.

This information is intended for informational purposes and does not constitute legal advice.  


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