When it comes to recovering from a Dallas personal bankruptcy, you may think you have all your proverbial ducks lined up in a row. You know that you’ll need to make faithful repayments on any and all debts you accumulate after your bankruptcy. You know that it will take some time to recover your credit rating. Above all, you understand that recovering from a Dallas personal bankruptcy takes time, patience, and more than a great deal of financial savvy…
Right?
Actually, there are some “innocent” recovery steps that can end up de-railing your efforts to repair your finances. With that in mind, let’s take a look at how NOT to recover from a Dallas personal bankruptcy:
Jumping at Every Offer of Credit
You know that responsibly using credit is a great way to recover your finances after declaring a personal bankruptcy in Dallas. However, this doesn’t mean that you should jump at every offer of credit you receive. It may be tempting (especially in the months immediately after your bankruptcy), but keep this in mind: too many credit lines will actually jeopardize your attempts to fix your credit rating. From sky-high interest rates to exorbitant late fees, these credit lenders are determined to make as much money off of you as possible.
Taking Out Loans For Longer Than Two Years
This rule of thumb especially applies for car loans. If you take out a loan for longer than two years, this tells credit-reporting agencies that you’re still not financially capable of supporting larger debt burdens. If you want to bounce back from your Dallas personal bankruptcy faster, it’s in your best interest to buy larger purchases outright, or at least put down a sizeable down payment that cuts your loan risk in half.
Accepting Sky-High Interest Rates
You might think that because you have a bankruptcy on your credit score, you deserve to pay sky-high interest rates. However, nothing could be further from the truth. Like with our first point of advice, you shouldn’t have to jump at the first loan offer you get, especially when the interest rates are almost criminally high. You deserve a fair credit offer that won’t put you on the fast track to another session in front of the Dallas bankruptcy courts.
If you want to make a solid financial recovery and do not want to end up back in the Dallas bankruptcy courts you need to search for the best offers, be selective and save longer for a larger down payment to keep your debt level manageable.