Right now many people’s finances are under strain. It can be overwhelming.
Some people aren’t able to pay back their loans. As a result, they file for bankruptcy and have to start over. Here we’re going to investigate how to start over financially after hitting rock bottom. This is how to get your independence back.
Make A To-Do List
A few years back, a copywriter from Ohio called Laura Justice got into some financial difficulty. She had a couple of medical loans that she needed to pay off that were affecting her credit score. She wasn’t earning a huge amount of money, but she decided to do what she could to pay off the loans. One of the first things she did was make a to-do list. To-do lists are a hallmark of successful people. They help to codify life goals and focus the mind on particular tasks. For Justice, the task was to save a small amount of money every month to pay off her debts. She committed to saving $5 for every $100 she earned. It was only once she had made the plan that she saw changes in her own behavior. The plan itself was what helped her achieve her goals.
Get Rid Of All The Stuff You Don’t Need
Many people wind up holding on to a lot of stuff that they just don’t need. It makes them feel comfortable, but it doesn’t actually improve the quality of their lives. We all have stuff that we bought on credit just lying around, doing nothing. What’s the point of it all?
When you’re trying to turn over a new financial leaf, it’s a good idea to do everything you can to break with the past. Gather up all the stuff you bought on credit and sell it. This will have the psychological effect of demonstrating to yourself that you’ve moved on. Suddenly, you’ll have space in your home to build a new life.
Re-establish Your Credit Worthiness
One of your top priorities after bankruptcy is to re-establish your lines of credit. If you don’t improve your credit score, you could face very high fees on any credit that you do want to take out. There are ways back into the credit market that are relatively inexpensive. Taking out a fresh start loan, for instance, is one option. The priority is to make sure that your repayments are made promptly. If you can prove to creditors that you can pay on time, they’ll reduce the fees that they charge, and you’ll be a lot better off.
Deal With Your Fears
Financial worries are among the most stressful concerns we face as adults. But sometimes this fear can become overwhelming, and that can be a problem. Fear has a habit of clouding our judgment, making it difficult to know what to do next. Fear shuts down fresh ideas and leaves us closed off to new possibilities and options. We often end up wanting to retreat into our shells.
Financial experts recommend taking baby steps if you are wracked by fear. They suggest talking to somebody who knows what you’re going through.