Life after Bankruptcy: How to Create a Budget

bankruptcy budget
coins budget

Once you file bankruptcy you most likely will have extra money after each paycheck since you just eliminated a bunch of debt.  So here are a few easy tips that can help you easily create a budget.

  1. Obtaining credit after bankruptcy is one of the key to having a credit life – after bankruptcy.  Using that credit wisely can help you get back on your feet quickly.  So even though you might qualify for a credit card you still need to use the credit you have wisely to create a budget.  By making small charges on credit cards and paying off the debt off each month credit is established quickly.  Make sure your don not try and carry a balance month to month since that may have been what got you into financial trouble before your bankruptcy.  If you now have a credit card balance pay it off as quickly as possible.  Each month carve as much as you can out of your household budget to pay toward outstanding debt this will pay down any credit card debt you have quickly.
  2. You might want to consider selling or returning what you’re not using. The money earned from these returns or sales can go towards your credit card bill and any other unpaid loans.
  3. Lower your loan interest rates.  One strategy that can really add up to a lot of savings is to reduce your interest rates paid on installment loans.  It can sometimes just take a simple phone call to lower the interest rate on your credit card.  You can lower your interest while paying off the debt, getting rid of it even more quickly. 
  4. Monitor your bank statements for monthly auto-debited financial commitments.  When doing this, it’s helpful to see what you can cancel and save unnessesary expenses like gym memberships or entertainment account you no longer use .
  5. Don’t spend money unless you have it.  Just because something is on sale doesent mean you need it.  By cutting back and being careful with what you’re spending you can prevent a lot of debt.
  6. Find an easy system to make a budget.  Today there are a variety of apps and online programs to help you make a budget.  You might want to check with your bank or credit union since many offer free budget software that integrates with your banking systems.

No matter what you do be smart about your money management.  We all need money to survive so we all have some money so use what you have to your advantage to show the creditors in the world that you can manage what you have – its one of the keys to success of bankruptcy.  Also check out the book Life After Bankruptcy in it you will find simple ways to thrive after bankruptcy. #utahbkguy

Leave a comment

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