Taking out too many loans, or accumulating too much debt on credit cards can lead to financial devastation. But sometimes it is necessary to apply for a loan in order to pay for unexpected expenses or to consolidate existing debt. If you do have to take out loans in order to pay your bills, it is important to come up with a plan for repayment that fits your budget. Even if you plan well, there could be a time where you are simply unable to service all of your debt and need some relief. For many people this relief comes in the form of filing for bankruptcy. This is a scary thought, because most people don’t want to take a hit on their credit or be denied a loan in the future. The good news is that even if you file bankruptcy, you can still take out a loan down the road.
If you file bankruptcy you will likely be surprised at how quickly after your filing you are able to obtain new credit. You might even begin to receive preapproved offers, but if you do it is critical you exercise caution when considering signing on the dotted line. Here are some good rules of thumb about life, and debt, after bankruptcy:
- Only agree to extensions of credit you can repay.
- Keep limits low, so you are not tempted to overspend.
- Be picky, it is okay to turn down a loan offer if the terms are not favorable. While you will likely not receive the best rates right off the bat, you don’t have to settle for outrageous charges and fees.
The key to taking on new debt after a bankruptcy case is your comfort level. If you need to, take a minute to evaluate the situation to determine if the loan is really necessary. Bankruptcy gives you a fresh financial start, and the best thing you can do with this new lease on your finances is to make choices that are in line with your budget.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that help get you back on your feet.