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Credit Counseling and How it Can Improve Your Post-Gilbert Bankruptcy Slump

Credit Counseling and How it Can Improve Your Post-Gilbert Bankruptcy Slump

When you file for bankruptcy, whether it’s Chapter 7 bankruptcy or Chapter 13 bankruptcy, you will have to take a credit counseling course. During the course, you will learn the pros and cons of bankruptcy, and you will learn about alternatives for debt relief. As you near the close of your bankruptcy case, you will be required to attend another counseling session that will focus on overall financial literacy.

Credit counseling is not just a requirement that you have to make yourself get through to complete your bankruptcy. It is a useful tool that can help you recover from your bankruptcy filing more quickly. Here are a few ways that credit counseling can help you get out of that post-bankruptcy slump faster:

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Create a Budget

Budgeting can help you stay within your means. You know exactly what you owe each month and exactly how much you make – and you know exactly how much is left over for fun stuff. You can see in black-and-white how much you have to put toward payments, such as for financing or for paying off a credit card. That can help you make better decisions about large purchases since you’ll know exactly how long it will take to pay it off.

Learning how to make a proper budget can help you establish good spending practices, as well as to identify and achieve long-term financial goals.

Develop Emergency Plans

You never know when an emergency strikes. In fact, the majority of people who file for bankruptcy do so because of an unexpected emergency, like losing a job, becoming ill or injured, or having a spouse die. Divorce can also take people by surprise and can cause huge financial problems.

Credit counseling courses required for bankruptcy teach you about the importance of having emergency plans, as well as teaching about how to develop them. You will learn how to develop an emergency fund, as well as how to get emergency help without resorting to credit cards or other debts.

Learn Smart Use of Credit

Sometimes, you have to use credit to get what you need. We don’t all have hundreds of thousands of dollars saved to buy a house after all. But it’s easy to get carried away with credit, so bankruptcy courses teach you about the smart use of credit to meet your goals without suffering setbacks.

You’ll learn about how the different interest rates work, smart strategies for paying off your credit cards when your balances get too high, and how different factors concerning your credit cards affect your overall credit score.

Understand Credit History and Score

Many factors contribute to your credit history and your credit score, and understanding these can help you make smart choices about credit so that you can get the best interest rates. Your bankruptcy credit counseling courses will help you understand these issues inside and out so that you can always make informed choices about the use of credit. The hope is that you’ll never run into problems with debt again because you didn’t realize the consequences of certain decisions.

Don’t drag your feet about the credit counseling courses, and don’t view them as punishment for filing for bankruptcy. Attend them enthusiastically and take advantage of the opportunity they offer to become more financially literate so that you can make smart choices for your future. You may have got into trouble with debt due to no fault of your own – such as after a job loss – but that doesn’t mean you can’t learn tips that will make you more financially savvy in the future. We can all benefit from that!

If you are struggling with debt, call Gilbert Bankruptcy Lawyers today. We help individuals and businesses apply for the debt relief they need through bankruptcy protection. A bankruptcy lawyer from our team will analyze your financial situation and help you understand the best course of action. Your lawyer will also help you understand the alternatives, as well as the pros and cons of each. Our goal is to help you get the financial relief you need to start over. Call us in Mesa today to talk to a bankruptcy attorney about your options.

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Gilbert Bankruptcy Lawyers
Office: 480-448-9800