REBUILDING CREDIT AFTER BANKRUPTCY

You have now found yourself 6 feet under in a ditch of debt. Declaring bankruptcy is a stressful process, but before you go pulling your hair out, take a deep breath and relax for there is a solution to your problem. While bankruptcy can stay on your credit report for up to 7 years in Jamaica, your credit won’t be that bad for long if you follow these three tips below:

1)  Making a budget and sticking to it- Figure out what you can afford to pay every month on your debts after paying your necessary expenses. For example, if your food budget is JMD$30,000  for the month, you need to ensure that you do not spend not even a thousand more that the thirty or pretty soon you could find yourself back at square 1. And we all know that’s one ride you don’t want to get on twice.

2) Only borrowing what you can afford to borrow- Once you know your budget, you know what you can afford. If you know that on your regular budget you could not afford a weekend at the Hilton, don't use your credit card to fund that venture. Stay out of the credit card trap and use the card only for things you can afford to buy yourself, like a meal at your favorite restaurant. That way, you know you'll have the money to repay.

 3) Setting up automatic payments so you don't miss any- Many people choose to not receive paper bills, and it can be easy to simply forget to make your payments. By setting up automatic payments, you can have your payments deducted directly from your bank account every month on the due date.

Lest you forget, the need to use credit wisely after bankruptcy is key to getting on tack and staying there. The aim is to show your creditors that you can repay your debt on time. After all life is better with good credit.

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