Chapter 13 Bankruptcy | How to Use Your Credit Card After Bankruptcy

Chapter 13 Bankruptcy | According to the latest numbers, American consumers are doing a better job managing their debt now that at any time since the Great Recession of 2008. Bankruptcy filings are at their lowest rate in 7 years, delinquencies are declining, and fewer people are being targeted by debt collectors.

However, the economy is still rough and many Americans are unemployed or underemployed. This may be a contributing factor in the increase in consumer debt we’ve seen in recent years—consumer debt is actually up 29 percent since the end of the Great Recession.

If you are carrying significant debt, it may just be a matter of time before you need to file for bankruptcy.

Credit card debt is one of the biggest contributors to unmanageable debt for many American families. Fortunately, it can be eliminated with a Chapter 7 bankruptcy, or reduced to a manageable payment with a Chapter 13 bankruptcy.

Recovering From Bankruptcy

Bankruptcy can provide a fresh start for your financial future, but you need to be very mindful of how you manage your money and rebuild your credit if you want to make the most of this fresh start and move forward in your life, rather than backwards right back into deep debt.

Here are some important tips that will help you understand the right and wrong ways to use your credit cards after bankruptcy.

Right Way

These three simple rules will help you rebuild your credit score as quickly as possible after a bankruptcy:

  • Open a credit card as soon as possible after your bankruptcy goes through. You may not qualify to open a regular account right away, but you can get a secured credit card which will allow you to borrow against a deposit given to the credit card company
  • Make purchases on your card every month, but do not spend more than 30 percent of your credit limit
  • Pay your balance in full and on time each month

Wrong Way

Don’t fall into any of the traps that may have set you on the path towards bankruptcy the first time around:

  • Don’t open more than one credit card—one is all you need to rebuild your credit
  • Don’t spend more on your card than you can pay off at the end of the month—not even to earn a reward
  • Don’t take out high-interest cash advances on your card – California Bankruptcy Relief

Specializing in bankruptcy and foreclosure law for over 20 years. Call attorney David Pinkston for a free consultation today: 904.306.5791. #FloridaBankruptcyAttorney #FloridaBankruptcy

If you are thinking about #bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! 904.306.5791