Declaring bankruptcy can be a gut-wrenching decision. It carries such a negative connotation and it is often seen as the last resort. However, how much more destructive is it really than trying to hold on and catch up to pay off your current debt?
Financial and credit problems can cause an overload of stress. Creditors calling every hour of every day and going through the difficulty of trying to make ends meet every month can be taxing to say the least. The stress remains so long as you have the delinquent debt and delinquencies can stay on your credit for 7 to 10 years causing you problem after problem.
After a bankruptcy you can start to rebuild your good credit. You can also find relief from the credit problems you are having because the slate will be erased. You start building good credit again and the easier it gets. The bankruptcy itself will stay on your credit for 7 to 10 years but the good credit you start to build afterwards really helps repair your financial future. You can start living so that you can start prospering again.
Credit problems will remain with you for 7 to 10 years no matter what you do. With a bankruptcy you can clear the slate and start over. If you continue to try to catch-up your bad debts you will continue to have the stress and the credit problems will affect you for just as long. Some problems are better to walk away from so that you can start over and begin again.
Immediately after a bankruptcy is discharged you can begin to repair your credit. Go to your local bank or credit union and get a small loan to pay on. They will probably charge you a higher interest rate but this should not be too much of an issue since you will only be borrowing a small amount and the plan is to pay it off as quickly as you can after you get a few timely payments recorded on your report.
You can also get a secured credit card. Many credit card companies offer credit cards based upon you making a deposit of cash into an account. Start with $500 to $1000, get your secured credit card and you have the process of rebuilding your credit started.
Immediately after you do these things your credit report will start recording a small improvement, unlike if you have late payments or delinquencies. The bankruptcy will continue to be reported but the good credit will start to show also. Trying to handle excessive credit difficulties can seem like the noble thing to do but in the long run it usually doesn't work out as well as just starting over. After a bankruptcy you can begin to rebuild on solid footing but if you are playing catch-up on bad debts you can't.
Bankruptcy is a serious decision. It should never be taken lightly and it can be a difficult process but at least you can get it over with and begin anew. Sometimes that is the best solution to a big problem.
About the Author:
I say you can get credit after bankruptcy by utilizing some simple credit repair strategies.
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