Q. Many people have lost their home due to foreclosure or had to file Bankruptcy? How can we recover from such drastic financial set backs?A. 1. Must recover emotionally. People who file for bankruptcy report feeling ashamed, overwhelmed, and hopeless Understand you are not alone, over 400,000 people file bankruptcy between Jan and June of this year.
2. If we do not recover emotionally we will continue to make poor financial decisions.
3. Address the actions and decisions that caused bankruptcy, it could be a number of things from sickness, job loss, divorce or oversumption (living beyond means)
4. Identify Your Goals- What's more important to you now
5. Check Your Credit Score - Along with your bankruptcy you don't need any other items on your credit report that is inaccurate. Your credit report will be used for securing housing, employment, insurance. Also you must have an explanation for future employees or creditors should you be asked.
6. Gradually re-build your credit score. Lenders still lend to folks who file bankruptcy, so beware!
7. Don't give up. As you acquire new credit, pay your bills on time! accounts for 35% of your credit score.
8. Avoid un-fair deals. Predatory lenders offer unbelievable deals that are plague with high interest and fees, don't be too hungry in seeking credit approval, wait for a better deal and use cash.
9. Budget Everything
10. Educate yourself financially and seek support. Become the expert and help someone else avoid bankruptcy.
11. Think Positively. Believe for favor in your business dealings and be a person of your word to the best of your ability going forward.
