Whether you filed for bankruptcy because a negative event caused your financial struggles or you developed destructive spending habits, it is important to create a plan for your post-bankruptcy finances. You have obtained your fresh financial start, so you want to protect it and ensure that you don’t have to file for bankruptcy again in the future.
Below are a few tips for protecting your post-discharge finances:
- Credit cards. You might be surprised to learn that you most individuals start receiving credit card offers within six months of obtaining their discharge. If credit card debt played a large part in your need to file for bankruptcy protection, you should proceed with caution and use credit cards wisely. It is imperative that you pay your credit card balance in full and on time to avoid paying late fees, interest, and further harming your credit score. Your creditors want to see that you are being responsible with your credit post-bankruptcy.
- Avoid payday loans. Check cashing and payday loans should be avoided at all costs. The interest rates on these types of loans can reach up to 500%! If you are in need of a loan, you’re better off borrowing from a relative or friend.
- Track your spending. Regardless of how you are paying for what you buy, it is important to track your spending. You will probably be surprised by how much you spend each week on small items that can add up quickly. For example, cutting out your trip to Starbucks everyday could save you quite a bit! Knowing where your money is going can help you develop better spending habits.
- Stick to a budget. You want to make sure you are living within your means, but you also should allow yourself some “fun money.” This is an amount you can spend on whatever you want without feeling guilty. The key, however, is that once that amount is gone, you don’t spend any more until your next paycheck. This helps ensure that you have enough funds to cover the necessary expenses such as rent, car payment and groceries.
If you are considering filing bankruptcy and you have questions, contact us for the answers. The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as student loan assistance, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.