What Happens When You Have Declared Bankruptcy in Rubic and Want to Restore Your Finances and Credit? What resources are available to you to improve your financial knowledge? How can you get back on track? Below we will discuss your options for restoring your credit after a declaration of insolvency and how to avoid financial problems later.
You have eliminated your debts. What to do now?
An official solution to debt, whether bankruptcy or consumer proposal, can offer you relief from your debts and financial stress. In addition, even if bankruptcy is not an optimal outcome for any family, it offers you a fresh start and the opportunity to restore your financial situation. Restoring your situation will take time and patience, but here are a few tips to get you started:
1. Open a savings account
The best thing to do for your finances now and in the future is to regularly spend money on your savings. Take the “pay yourself first” approach by setting aside a specific amount of money from each paycheck or by setting up a direct transfer to your savings account. Start with small amounts, then set up an emergency fund equivalent to all of your household expenses for 3 months, then start spending money on your long-term savings, such as retirement savings. The Financial Goals Calculator: Scoreboard from the Financial Consumer Agency of Canada can help you set your savings goals.
2. Stick to your budget
Savings and budgeting go hand in hand. If you don’t know where your money goes each month, you will be hard pressed to progress. Use a budget to anticipate future expenses and allocate money to specific categories to avoid excessive spending and achieve your savings goals. Learn how to build a balanced budget using a budget worksheet or budget calculator.
3. Pay your bills in full and on time
Whether it’s your rent or mortgage, insurance, car loan, utility or telephone bills, you have to pay it all on time. Otherwise, the cycle will continue and you will still need to catch up. The best way to keep track of multiple bill payments is to automate them from your account so that everything is always paid in full and on time.
4. Ask for a guaranteed credit card
When you feel you are in control of your budget and savings, you may want to apply for a secured credit card. To obtain such a card, a deposit is required as collateral to ensure that high-risk borrowers are less likely to find themselves in default. You can use the card as a regular credit card to make purchases. However, it’s best to start off slowly by making small, easy monthly payments, like a Netflix subscription, and adding small, manageable purchases.
5. Improve your financial knowledge
Look for money management workshops offered online or in your community. Otherwise, visit FCAC for free budgeting, savings and planning resources that will help you regain control of your finances. Manage Your Money Better can also help you save for the darker days, estimate the amount of money you will need to withdraw, and stay on top of your budget using online calculators. .
Learn more about what happens if you file for bankruptcy and how to restore your credit by following us on Twitter and Facebook.