Financial hardship is no laughing matter, and it is not rare either. Around 40% of American households are in debt, with millions of people struggling just to meet basic living costs. On top of that, you have medical debt, which is one of the leading causes of bankruptcy.
You may have found yourself in a position where, after careful consideration, you decided that bankruptcy was your only viable option. This offered you the chance to clear your debts and start afresh. Unfortunately, these measures have caused your credit rating to take a hit. Is there anything you can do to get this back on the right track again?
Looking at your lower credit score can be upsetting. It is not uncommon for people to switch off and forget about it. The truth is that you can rebuild your score again, and the first stage of this process is knowing where you stand. There are numerous free tools available that help you to keep track of your score. Some of them even make sensible suggestions for how you can begin to improve your rating.
Paying on time
Missed or late payments will have a detrimental effect on your credit report. They will show up on the report and it could take months to clear them again, potentially putting you back to square one. Simply paying your household bills on time can make a huge difference. If you do get into the position where you are struggling again, creditors are often willing to discuss payment plans that reflect your current situation.
Bankruptcy is a new beginning rather than an end. With proactive measures and the appropriate legal guidance, you can start to rebuild your finances within a relatively brief period.