Why you filed bankruptcy is your business. What happens after filing bankruptcy and your evaluation of what lead you to do so that can help your future financial goals.
Choosing to file bankruptcy is a personal decision.
- Unexpected or sudden job loss?
- Overwhelming medical expenses?
- Unmanageable or out of control debt?
Again, your reasons are unique to you.
No judgement…fresh start
Bankruptcy comes with certain challenges. Personal issues aside, there’s the practical impact on your financial future for a period of time.
It’s essential that you do some self-assessment. Start by seeking fresh perspective from those trained to assist you with debt management and financial planning.
You will need more than sheer willpower to avoid the traps of debt that lead to your bankruptcy.
Reset your financial mindset.
Focus on reversing your credit-dependent lifestyle. Low interest credit cards, line-of-credit loans, and deferred interest promotions make it easy to rely on an enjoy-now-pay-later way of life.
- Eliminate or significantly reduce your use of credit cards. A bankruptcy will perhaps do the eliminating for you. If so, use the fresh-start season to establish new spending priorities – without a reliance on credit.
- Trim your expenses. Dining out and unnecessary grocery and shopping binges are good places to start. The occasional splurge is okay but adjust to preparing meals in advance, maximizing leftovers, and preparing and packing your lunch during the work week.
- Inventory your vehicle and transportation costs. Are you in a position to downsize your automobile? Perhaps your bankruptcy has allowed you a window to refinance your auto debt at a better rate.
Seek guidance from a debt service professional about these mindset shifts.
Redefine your budget
Budgeting can give you a renewed sense of being in control of your finances. For starters, you’ll begin to push-pause before making a purchase or committing to another financial burden.
- Inventory your previous purchases. Scan back a month, two months, a quarter or more and observe any purchasing patterns. Those can include everything from necessities to emotional spending.
- Log your spending habits in writing. Pen to paper or using a spreadsheet can create some useful accountability to help you avoid unnecessary financial commitments.
- Observe where your paycheck is going. How much is being spent on expenses such as housing, fuel, groceries? Determine where you can save and even cut some expenses.
A budgetary cut can go a long way. Plus it puts you back in control of your spending.
Bankruptcy is one chapter in your life. With a shift in mindset, seeking guidance, and redefining your spending priorities you can turn the page to a new chapter in your financial health.
Contact PCS Debt Relief about bankruptcy and your business and personal debt relief solutions.