Have you gone through any financial hardship after bankruptcy that blew away your savings? If yes, then you must be careful about the future financial prospects. Remember, filing bankruptcy hits credit score badly, so you should take right financial steps to get back your financial stability. Getting back your previous score requires positive efforts and time. You have to be financially disciplined if you want to get back on the right financial track. With time, you can rebuild a good credit history. idHere are some easy yet effective tricks that will help you to get back your financial prosperityid:
1. Craft and follow a budget
The first step that you should take is to idfollow a thrifty budget that eliminates all kinds of unnecessary expensesid. You must make the budget and also follow it so that you can keep a track of your monthly income, expenses and also monitor your savings. Follow this budget throughout the month and also evaluate it at the end of the month, so as to make space for improvements.
Read more - Master the art of budgeting: 8 Apps that make the task easy-peasy
2. Reduce unnecessary expenses
Saving money on all the unnecessary expenses will help you to have the additional funds. Thus, you'll be able to fight back financial crisis. idKeep money in a savings account and allow it to stay there for a longer periodid. Don’t use your savings account as a piggy bank as you may fall in a mess in the long run.
3. Ditch your credit cards
Credit cards force you to make unnecessary purchases. So, it's a brilliant idea that you don’t carry them. Carry cash to stop accumulating further debt. Thus, you can, at least, stop shopping when you exhaust the cash and put an end to your shopping spree.
4. Always try to save money
According to financial experts, there is no shortcut to saving money. It’s advisable to idsave at least 10% of what you make in a monthid and put it in a bank savings account. Let your money grow.
5. Opt for a secured credit card
A secured credit card is almost like a debit card. idIt allows you to deposit an amountid. The credit card company gives you a credit limit that is equal to the amount that you've already deposited with them. So, you must maintain the balance. You can't cross your credit limit. This way you can improve your score and build a good credit history.
6. Review your score regularly
As you hurt your credit score after debt resolution, you must keep a track on your credit score. Don't forget to review your credit report from time-to-time. Thus, you can get the exact listings on the report and take action.
7. Make a fresh start
You shouldn't make the same mistakes again. idSet new financial goals and take baby steps to achieve themid. Don't borrow money for unnecessary reasons and try to live within your means. These mantras will help you to start a fresh financial life.
8. Make payments on time
Forgetting to make payments on time is a serious financial mistake that you must avoid. Credit card providers charge late fees and penalties as well. idYou can become highly indebted if you go on incurring late fees and penaltiesid, idand this can get you into a real financial messid.
9. Get financial education and know your options
Try to educate yourself about various debt relief options (debt consolidation programs, debt management plans, credit counseling agencies and debt settlement programs). Thus, you can cope with financial hardships.
10. Find out additional source of income
You must boost your income so that you've enough money in hand. Try to find out secondary sources of income to utilize the money in repaying your high-interest debts to become debt free.
11. An emergency fund is a must
Everyone needs an emergency fund to overcome financial hardship. This gives you financial back up during financial catastrophes. idIf you think your credit cards are enough for emergenciesid, idthen you're welcoming huge credit card debts in the futureid. Feed your emergency fund to fight back financial hardship.
Final thoughts
Financial hardship can arrive in your life in any forms. It may leads to bankruptcy as well. Make sure you fight back to rebuild your financial health to avoid further financial problems. Do you have other tips in mind to fight back financial hardships? Please pen down your thoughts in the comment box below.
