Bankruptcy is the thing that no one wants in his or her life. It is like accepting that you have failed in maintaining your finances. Still, if you are facing such this issue, then there is no need to feel sad and don’t perform any task. After all, you need to run your family and fulfill each one’s needs.
The time is to think optimistically and implement it in the right direction. You have current debts to clear, and there is hardly any chance of salary increase in the coming days. In such a situation, you should reconsider the concept of bankruptcy and try hard to repair your credit profile from now.
If you are still using your credit cards and applying for the loans to eat and enjoy, then it will not do good for your financial health. It is like you are clearing one debt by taking another debt.
Please do not go into more debt when the tag of bankruptcy is already there, and your credit score is going worst.
Instead of crushing down more into the financial problems, you need to work hard to repair your credit scores. For more help, you can go through these recommendations.
1. Rethink Your Financial Plan Right Now
You have made mistakes that caused your finances severely. It is the thing of the past; what about the present?
The moment has arrived for you to rethink your financial plan. Analyze where you have made the mistakes and what should be done now.
Remember, your bankruptcy and very bad credit score do reflect in your Experian credit profile until you get rid of them. Don’t think that no one will take notice of it. If you have bankruptcy or the County Court Judgement (CCJ) against your name, you might face trouble in going for rent or struggle to find out the new job.
You need to avoid these situations to happen by rethinking the plan of handling the finances. Calculate your monthly income and take out some amount to pay off the pending dues.
If it is not possible, then try to arrange money through borrowing means.
2. You Must be Financially Stable After Bankruptcy
You need to be more logical at this time. Do not think that no one is going to believe in your financial capacity. There are many instances where people have shown efforts for improvement. Many lenders want them to continue to stabilize their finances more after bankruptcy.
The prime example is where a reputed online lender in the UK, SafeMoneyLoan, is ready to offer CCJ loans with no guarantor requirement. These loans help them to revive their finances and remove the tag of CCJ or bankruptcy from their financial profiles.
These loans actually work on the same day approval concept. No guarantor is required because the borrowing amount is small. With getting the loan within a few minutes, you have enough time to get back on the better finances.
Once you can do that, you can make your situation better in terms of borrowing in the future or getting more employment opportunities.
3. Your Credit Report Should Highlight Zero Debt
It is another crucial step to repair your credit after bankruptcy. You have changed the financial plan and borrow funds through the means of CCJ loans. It means you have enough funds to clear all the dues within the time limit.
You make sure that your credit report is mentioning zero debt after the bankruptcy. Use your credit cards wisely, or better would be not to use the card for a few days. Or, if you want to do this, then do it in an urgent situation where you have to use it.
Any carelessness and negligence will cause badly to your financial prospects. In such a situation, no lender would able to help you when borrowing funds become necessary.
It is something like risk management in finance. You know that risk is always there, but if you manage it efficiently, then things will be going to comfortable to handle.
In the Nutshell
Bankruptcy does make the credit score worst, and you lost the financial trustworthiness in the marketplace. However, repairing the credit rating after bankruptcy is challenging but very much possible.
How much cash do you have is not vital, but how will you manage it makes the difference. There is a thin line between these processes, but if you can walk through this line, then no situation can stop you from living life with full constancy.
Lending options like CCJ loans create ways to achieve the target of credit score repair. A bad credit score is better than very poor, a fair credit score is better than a bad one, and a good credit score is always beneficial in comparison to the fair one.
The journey from very poor to good may be long, but not impossible.