May 24, 2017 0

Effective ways to Recover After Declaring Bankruptcy

Posted by:Charles Bosse onMay 24, 2017

Declaring Bankruptcy,Bankruptcy Gold Coast,Bankruptcy Advice

There’s no doubt that are some serious financial repercussions in declaring bankruptcy, and there’s no question that your life will experience some substantial changes. If you’re in this predicament, don’t be alarmed. The difficult economic times witnessed 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 imperative that you look towards the future and aim to recover as best as possible. Bankruptcy doesn’t mean the end of the world, it just means that some changes 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 filing for bankruptcy.

Emotional recovery

It’s usual for people who declare bankruptcy to experience feelings of failure, self-loathing and remorse. Whilst it may seem natural have these feelings, being bankrupt is the result of merely another mistake that we all make as humans. You should stop punishing yourself and look towards the future. Bankruptcy is the very first step towards financial freedom, and recovering from a bad credit rating is less complicated than you think. The longer you succumb to these negative feelings, the longer it will take to recover. Addressing your financial problems is the first step in overcoming them, so you’re actually in a better position than you were prior to declaring bankruptcy.

Self-Evaluation

It’s essential that you evaluate the reasons why you became bankrupt to make certain you don’t make the same mistakes again. Declaring bankruptcy gives you a second chance to get your finances in order, so it’s best you make the most of it. Even though there’s possibly a number of reasons why you declared bankruptcy, all of them probably pertain to poor spending and borrowing habits. So it’s a smart idea to create a list of two or three things that led you to declaring bankruptcy and commit yourself to not making these mistakes again.

Create a budget

Once you’ve rebounded emotionally from bankruptcy, the next step is to make a realistic and manageable budget. You’ll have to evaluate your income and expenses carefully, and work out a way to save money while still paying all your living expenses. Even if it means that you downsize your house or relinquish some luxury items, becoming financially stable is your foremost priority. There are some simple ways to save money, for instance eating at home instead of eating out and cancelling your gym membership in favour of walking to work. Always remember to include in your budget an amount for unforeseen expenses.

Pay your bills on time

The very first step in repairing your bad credit rating is to ensure that you pay all your bills on time. Though this won’t improve your credit rating immediately, it will ensure that your credit rating doesn’t drop any further. You might prefer to set up automatic bill payments with your bank to ensure 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 powerful action you can take to restore your credit rating.

Increase your income

If you haven’t already got stable employment, now is the time to do so. Consistent income over time will not only strengthen your credit rating but it will enable you to increase your liquid assets, providing you with more options. If you’re in a situation where you can acquire a weekend job, you should genuinely consider it. Or take a look at your hobbies and attempt to create a way to increase your income by doing something that you enjoy. Cash is king when you’re bankrupt so anyway to increase your income is a great idea.

Though declaring bankruptcy is never an easy decision, it is the very first step in confronting your financial problems and learning from the past so you can enjoy financial freedom in the future. It’s important that you review the reasons that resulted in your financial hardships to ensure they don’t happen again. Secure employment and paying your bills on time will increase your credit rating gradually, and adhering to a budget is very important. If you’re considering declaring bankruptcy and need some advice on your options, reach out to Fresh Start Solutions Gold Coast today on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-goldcoast

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyrights © Fresh Start Solution.