While filing for bankruptcy in the first place may not have been because you spent too much, saving money after filing is perhaps the best decision you can make. While it may seem obvious that overspending after bankruptcy is reckless, many make the mistake of falling into old shopping habits with clean credit cards and more cash.

You may have trouble getting a loan or credit card. It takes time to rebuild credit after bankruptcy. But it can definitely be done and you can start shopping soon enough. The only problem is that some take this to the extreme. Saving money is the answer. This article says that saving money can be challenging, but it is something you have to take on.

Don’t make the same mistake …
What got you into the trouble that led you to file for bankruptcy? In other words, what did you spend money on, what medical bills did you receive, what interest rates did you face, and what bills did you struggle with? Sometimes it is not your fault that you have filed for bankruptcy. You may have suffered an injury, received a medical bill for $ 40,000, and just had to submit it.

It doesn’t matter why you applied, because you should save money after filing for Chapter 7 or Chapter 13 bankruptcy. The more you save, the more likely you are to avoid filing for bankruptcy a second time.

Protect the assets you still have
You probably have some assets and properties that you want to keep. Maybe he went bankrupt to protect them. Now, with the money you have saved and earned, put it in your bank account. Instead of spending your checks on expensive dinners and other items, you can protect your home, car, and other assets. If you have problems again, you may not be able to file for bankruptcy a second time (you must wait 8 years for Chapter 7 and 6 years for Chapter 13). So if you want to keep what you have, keep it.

Pay all bills early
A bad habit that many of us have is paying bills on days that are due or paying a late fee because we forget it. This needs to be stopped if you really want to save time, money, and headaches, not to mention rebuilding your credit. To rebuild your credit, you need to avoid falling behind on bills, and the best way to handle this is to pay them early.

Build your credit
As just noted, the more money you have, the better chance you have of paying bills on time. If you save more money, logic says you can rebuild your credit. By saving money and paying bills on time, including credit and loans, you are rebuilding your credit in the best way. Then you can get a new credit card or loan when you need it. This is a great benefit that many overlook.

Liberty
Yes, spending money can be fun. And when you have a job, you deserve the right to spend money the way you want. But true financial freedom comes when you save. You don’t need to delay certain bills to pay your mortgage. You don’t need to receive phone calls from creditors all the time. And there is no reason to worry about a second bankruptcy if you have money saved. Bankruptcy itself frees you from debt. Take advantage of that benefit.