There is no greater feeling than the lifted weight of becoming debt-free. After you’ve been through your bankruptcy filing and have had your debts discharged, you get the opportunity to start over. And the best path towards your new beginning is to restore your financial health. While managing your fiscal situation may take some time, going through this process is essential to fostering your mental and material wealth. The Atlanta Bankruptcy Lawyers at CMC Law can help you maintain a debt-free lifestyle and strengthen your finances post-bankruptcy.
Determine Your Budget
Based on your individual circumstances, it is likely you will need to restructure your budget. Atlanta bankruptcy lawyers advise you to categorize your budget in three ways: monthly bills, variable costs on extras like food or entertainment and irregular expenses such as surprise medical costs or annual insurance fees. Reviewing your past bank statements and current income can help you determine how to delineate your money appropriately.
Set Up Your Savings
Investing in a savings account is a great preventative measure to keep you from falling back into debt. Atlanta bankruptcy lawyers suggest creating an automated direct deposit of a portion of your income into a savings account that should be considered out of sight, out of mind. This way, you can easily save with minimal effort on your part. Think about using this to set a target amount for an emergency fund. While the exact amount should be calculated based on your specific circumstances, a good rule of thumb is to have at least $1,000 in the account to cover any unexpected costs.
Rebuild Your Credit Score
Building up your credit score is one of the most important ways to restore your finances. In order to do this, you should regularly monitor your FICO and credit scores. Atlanta bankruptcy lawyers recommend pulling your credit reports from Equifax, Transunion or Experian at least once every four months to know where you stand. Due to the current situation with COVID-19, these credit agencies are offering free weekly reports through April 2021. Credit Karma is another helpful tool to help you track your credit score by providing monthly updates and analysis to factor the components that are helping or hurting your credit score.
Another useful way to positively impact your credit score is to get a secured or pre-paid credit card. Atlanta bankruptcy lawyers advise you to only use this card for small purchases and pay off the balance monthly or weekly if possible. By consistently paying this balance on time every month, you gradually improve your credit score. You can also use Credit Karma to review your secured credit cards and monitor your progress
Paying your other bills in a timely manner is crucial. Atlanta bankruptcy lawyers know the fastest lane towards a great credit score is through your payment history. Being stable with your mortgage payments, student loans and other bills establishes a reliable track record that is sure to lead to an improved credit score.
Atlanta Bankruptcy Lawyers at CMC Law Can Help You Earn Back Your Wealth
While it may take some patience on your part, the process of reconstructing your finances after bankruptcy is sure to enhance your life for the better. Contact the Atlanta Bankruptcy Lawyers at CMC Law for advice on wealth building.
At CMC Law, we serve our clients honestly and ethically to help them meet their financial goals.