by Paul McDermott

You have made the tough but necessary decisions to get your finances in order, and have gone through the bankruptcy process and now plan on getting your credit back in order. Can you really do it and if so, how do you do it and how long will it take?

Just because you made some bad choices in the past, if you are really serious about it, you can repair your credit after declaring bankruptcy. In fact you will save a lot of money over time in interest charges by improving your credit score.

It's probably best to not try for credit for awhile except maybe a secured credit card. The reason is because the credit score is low and there will be turndowns showing on the credit report. It will stay low as long as you continue to try to get new credit and get rejected. It is better to pay cash for needed things unless there is an emergency.

Even with good use of your finances, it can up to ten years to get your credit back to a normal level. It may seem like a long time, but the benefits can be tremendous in terms of money saved. And when you consider that you have just had your big debt balances erased by bankruptcy, this is still a better situation than before your bankruptcy.

What to Do to Repair Your Credit After Bankruptcy

The first thing for people to do after bankruptcy is to take stock of all they have and make a plan to make things better. This can be done by having a budget. Make the budget realistic by adding every expense that there is.

Next, put some money aside via automatic deposit for emergencies and future planned expenditures like a house, college for your kids and retirement. Then plan your purchases and avoid impulse buys. If you really have a weak moment and buy something unplanned, use cash. Remember, you don't want the suffocating feeling of drowning in debt again.

If impulse buying was what got you into trouble before, find a way to short circuit that tendency. Aren't at least a little mad at yourself and the finance companies for your previous debt problems? Resolve to keep them out of your life this time. One good trick is to wait a day to buy that thing you think you just have to have. You will find that almost always the urge goes away.

Lastly, find a spiritual outlet. Get in touch with that part of you that knows more things won't bring you lasting satisfaction. As you resolve to live more genuinely, and treat your finances more maturely, your credit will automatically improve after your bankruptcy, and before you know it, your credit score will be back toward normal.

Paul McDermott shares his experience with credit repair after bankruptcy and other personal finance lessons, some learned the hard way, at Credit Repair Guide. Click here for other unique 'credit repair after bankruptcy' articles.

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