Step two — Start Hoarding
You’re going to need some cash to get your credit going again.
Secured debt credit cards require a cash deposit, and if you’re
going to get a decent interest rate in the near future you’re
going to need money for a down payment. You also want to save up
cash to make sure you have an emergency fund to protect you from
missing a payment and putting you right back where you started.
The good news is that this should be easy — after all, you don’t
have as many payments to make as you did before, right?
Some good strategies for saving money
include:
- Limit the amount of cash you keep in
your purse or wallet.
- Put away any debit cards you have.
- Don’t buy anything without thinking
about it for at least 24 hours first.
- Eat out less and cook at home more.
- Give yourself a savings goal and
reward — “If I save $1000 this month, I can take myself out
for dinner.”
- Tell your friends and family that
you’re focused on saving money — they’ll help you.
Think of saving money as an important life
skill — just as important as knowing how to tie your shoe, how
to cross the street, or how to count change.
In addition to hoarding cash, you also
need to start saving every paystub, every bank statement, and
every bill you pay for the next few months. Because of your
recent bankruptcy, creditors will want to see proof of your
income, residence, and that your bills are being paid on time
before they will extend you credit. Start saving all of these
important records so you’re prepared. Also, make sure to keep
your bankruptcy discharge papers in a safe place because you’ll
need those too.
Next Step: Step Three