If you talk to people who have gone through bankruptcy, you might be surprised by what they have to say. Far from being some kind of terrible misfortune, getting debt relief can actually be, well, a huge relief!

Clearing your debts and starting over is an incredible feeling. But first you need to know how to get through the process and how to budget afterwards.

Personal Bankruptcy Help

There are so many reasons people seek personal bankruptcy help. Financial hardship comes in many shapes and sizes. Sometimes, debt relief is simply the smartest way to put your debt behind you and start over again.

You might be able to budget to avoid bankruptcy, but if your debts are large enough, it doesn’t always make the most sense. It can take years and your credit will still be damaged as you climb out of that hole – and interest rates are constantly making it deeper.

Ask about personal bankruptcy services at debthelp.bc to find out how debt relief can help you. Taking the right actions now can speed up the recovery process and save you money in the long run. Then you can focus on getting back on the right track.

Budgeting After a Personal Bankruptcy

Successfully budgeting your money once you’ve been discharged will help set you up for lasting financial success. This is your second chance; make the most of it!

1. No More Late Payments – Ever

The worst thing you can do for your credit score is pay late (or not at all). Pay your utility bills, phone and internet, and credit card bills on time and in full. In return, your credit score will get better and better, until you’re qualifying for lower interest rates. Make sure paying your bills on time is part of your budget. Getting hit with late penalties will mean less money in your pocket and make the problem worse.

2. Use a Cash Diet

It’s important to keep using a credit card to improve your credit score, but if you’re worried about out-of-control spending, try the cash diet. This is where you only withdraw the amount of money your budget tells you can spend each week and you pay for everything in cash. You’ll keep a much closer eye on how you part with that cash.

3. Never Pay Credit Card Interest Again

Once you’re debt-free, take this important lesson: credit card interest is like a hamster wheel. Even when you’re making regular payments on your card, interest means the wheel keeps spinning and you’re barely making progress. Never pay interest again by paying your balance in full each and every month.

4. Save an Emergency Fund

Your number one saving priority after bankruptcy should be putting together an emergency fund. This is money you don’t touch until the alternative is having debt hang over your head. At first it might just be for surprise, urgent expenses like car repairs. As it gets bigger, make it your rainy day fund, so it can help cover costs if your income is affected.

Getting out of debt isn’t easy, but staying out of debt is do-able with the right mindset and the right plan!