If you’ve recently filed for bankruptcy in New Jersey, you may be fearful about your financial future. While it’s true that bankruptcy can have an impact on your finances, it is possible to recover and get your life back on track. U.S. News & World Report offer the following information in this case, which will help you rebuild your credit and savings once again.
Think about what led you to bankruptcy
Bankruptcy can happen for all kinds of reasons. For some people, it may result from an unexpected job loss or serious illness. For other people it occurs because of poor financial decisions and a failure to properly manage money. If this is true in your case, sit down and think about those decisions you made and how to avoid them in the future. The best defense against future instability is to create a budget and stick to it.
Review your credit report
It’s possible for there to be erroneous entries on your credit report. These entries will bring your score down due to no fault of your own, so it’s important you address them to the appropriate credit bureau. This is especially important after bankruptcy, as debts that have discharged may still show up on your report. Have documentation handy when disputing entries to ensure the issue is dealt with swiftly.
Be wary when using credit cards
At some point you’ll likely apply for another credit card, which is an important component of rebuilding your credit. Making payments on time and using your card wisely is crucial in this case and will reflect positively on your credit report. However, be wary of accepting a higher credit limit, as this can take you down a dark path financially. Use your credit card sparingly and smartly while also building your savings.