Debt Consolidation Loans

Bankruptcy will remain on your credit report for ten years. But you may be able to get credit fairly quickly - almost immediately after a bankruptcy - although you will pay dearly for it.

Due to anomalies in the credit scoring process, you’re likely to have a better score than you had while you were struggling with debt. Also if you handle debt responsibly from then on, you will find your credit score will be close to prime within a few years.

Credit scoring gives more weight to more recent events. So if you use of credit is down and you’re handling your debts responsibly, you score will go up. Remember you have to use credit to get a credit score.

Many lenders love to extend credit to recent bankrupts. They know you have more free cash because most of your debts were discharged. They also know you can’t go bankrupt again for another seven years. So they will extend credit, usually with outrageously high interest rates.

If you managed to keep your car and/or house through the bankruptcy, your first step is to pay these bills on time.

If you have to start fresh expect to pay. A car loan may carry a 21% interest rate. Credit cards you’re offered might have an interest rate around 24%. These rates will make it very difficult to stay on top your debt.

Many experts advise that if you need a new car to get it before you apply for bankruptcy and keep your payments up. You’ll have a lower interest rate and will be on your way to re-establishing credit.

You might only qualify for a secured credit card at first. You will have to make a deposit of several hundred dollars with a bank, which will then grant you a line of credit in the same amount. If you handle this card correctly, the card will be converted into a regular unsecured card in a year or so. Make sure the lender is making periodic reports about your good behavior to the credit bureaus.

Don’t use more than 20 - 25% of your available credit, even if it’s only $500. Pay your bills on time. If you act responsibly, in a few years you will be able to loans and mortgages at rates only slightly higher than prime borrowers get.

If you need to rent an apartment, you might have more difficulty. Landlords who check your credit report might not rent to you at all. Your auto insurance premium will likely rise and you might have difficulty getting a new job. These are some of the downsides of going bankrupt.

Everything is not all brightness and light, but the few sacrifices you will face might be worth the removal of the emotional and financial pain you are suffering every day you struggle with a load of unpayable debt.

Chris Cooper is a retired attorney who has spent several periods of his life deep in debt. At http://www.credit-yourself.com he tries to pass on some of the knowledge he picked up in his journey to become debt free.

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Nobody files for bankruptcy with a completely fatalistic outlook on what lies ahead. Since the provisions available under bankruptcy basically afford a fresh start, maintaining a positive attitude will go a long way in “”coming out from under and rising above. The idea is to make the best of a bad situation.

Most banks now offer secured credit cards to people who have filed for bankruptcy. However, it is a safe bet that the mismanagement skills that led to the original disaster have not been exorcised, and there are chances of further misuse.

In order to come to terms with the realities of life after bankruptcy, it is essential that one undergoes professional financial counseling. Independent financial decisions should be avoided.

To regain some kind of credit status after filing, it is best to join a credit union. They are often helpful in the acquisition of assets that would normally be out of reach under the circumstances, and their operational parameters will act as inbuilt safeguards.

It can safely be stated that at least 50% of all bankruptcies in America occur because most US citizens do not comprehend what a financial drain credit can be. Long term drawbacks are usually ignored for short term gains.

As much as possible, it is wise to stick to cash only transactions and adopting a comparatively frugal lifestyle after declaring bankruptcy. Credit purchases should be limited to a single credit card, and the accrued debt should be religiously cleared every month.

Finally, regaining financial solvency is a matter of slow and steady perseverance, not of fraudulent, get rich quick schemes. It is insufficiently researched ambition that lands most people in a bankruptcy court, and a coming to terms with life that keeps them out of it afterwards.

Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.

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One of the easiest ways is to start getting credit.

An easy way to get credit is to apply for a credit card. There are plenty of companies online that offer credit cards to high risk credit/bankruptcy.

Most of the cards offered require a security deposit or only offer a small credit balance.

The point is; you need to get a good credit track record and start building your credit again.

The magic number is 3. The lines of credit that report to the credit bureaus. Over time (12 to 24 months)you will start to see your credit score dramtically improving.
Having a good credit score means saving money.From purchasing a home to car insurance rates.
We all know how important credit is today.

Bankruptcy is more common than you think. If you have filed for Bankruptcy, you’re not alone.

Here are some statistics:

The United States Census estimates that in 2002 there were about 288,000,000 people in the U.S. In the fiscal year that ended on September 30, 2002, the Administrative Office of the U.S. Courts determined that there were 39,091 business bankruptcy filings and 1,508,578 non-business bankruptcy filings in this country in that year. Assuming that each non-business bankruptcy filing means one person filed for bankruptcy, then one out of every 191 individuals in the country, including the number of children, filed for bankruptcy in fiscal 2002. A bankruptcy filing can include a husband and wife, and therefore the number of filings of 1,508,578, means that more than that number of individuals filed for bankruptcy that year.

There is always a chance to start over again.

Author Mike Tirio
findamortgage.com
http://www.findamortgage.com

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So you’ve finally been discharged from your bankruptcy, and now you are free to do whatever you want again. The world is your oyster!

But before you grab a bucket and head for the beach, there are a few things you need to know. First of all, a bankruptcy discharge is not a license to shop. That itch to celebrate your newfound freedom might almost impossible to ignore, but if you want to stay debt-free, you are going to have to lay low for awhile, especially in the three months after your discharge.

Here’s why: you probably feel like you’ve been in debt forever, but you’re not the only one who knows it. Credit card companies have caught the scent too, and chances are you’re getting applications left, right and center these days. Talk about tempting! The best thing you can do is to throw those applications right into the recycle bin, regardless of how much this or that company says they want to help you rebuild your credit. The truth is they don’t want to help you rebuild; they want to help you get back in the position that caused you to go bankrupt in the first place.

Those ‘high-risk’ cards come with a lot of caveats - the fee you pay to get the card, for instance. Some cards will actually charge you for the card by placing it on your card. So if your card has a $100 limit and it cost you $75 to get, guess what? You only have $75 in credit. Go over that, and get ready for some nasty fees.

So how can you get your life back to normal? Before you do anything else, you have to change your spending habits. Really think about the cost and quality of things and put yourself in control. For example, is it really worth it to buy that brand-name bread when the store brand is just as good and costs a dollar less? It’s a small-scale example, but if you can apply that kind of thinking in baby steps, pretty soon you’ll be able to apply it to everything you buy, no matter how large. So clip coupons, try to buy when things are on sale, and don’t go hog wild when you do buy.

Second, prioritize your bills. Your most important, must-pay-on-time bill every month should be your rent or mortgage. It’s your shelter, and without it, handling anything else that comes your way becomes a lot more difficult. Your utilities are next, because you have to be able to cook and store your food. Your third most important bill might be the telephone, the fourth your cable TV or satellite, and so on. Take an average of how much of your pay check goes for rent/mortgage and bills. Then, set aside a little bit of each check to put toward each bill. It might be tedious, but trust me; it will be worth it once you get into the flow.

The second thing you have to do is save up $500, doing the same as you’ve done for your bills - take a bit out of each pay check. Only this time, open a new account. Once you’ve saved $500, run to your nearest bank and request a secured bank loan for that amount. The bank should have no problem granting your request, as the money’s already there. For the next 90 days, make your payments on time, every time. You will be amazed at how much faster this will build your credit than those high-risk cards!

If you have to use credit, why not do so to your advantage? Here’s how: purchase an item that’s on sale with your credit card. Then, when your credit card bill arrives, pay the item off in full. That’s it! You get to enjoy your new item for a month before you have to pay for it. If you can stick to this, your credit will have nowhere to go but up.

By applying the above tips, your credit will be given a boost at a time when you need it the most - in the first 3 or 4 months after a bankruptcy discharge. You’ve been given a second chance. Don’t give up - you can do it!

Mary joined up with Credit Is Key to help spread the word to people rebuilding their life after bankruptcy. Don’t let it pass by you, it’s just a click away!

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