Financial trouble is a part of life, even after you have filed bankruptcy it’s normal that you will have some rough times ahead. At least once every ten years, most Americans face at least one major financial issue. But how should you handle financial troubles when they come your way? There are a myriad of ways to get your head above water; but there are some financial “lifesavers” you should avoid.Payday Loans. These easy to get, hard to get rid of loans are the type of financial products that could blast a gaping hole in your already slowly sinking financial ship. Payday loans promise fast cash and easy payments; but the reality is that they are extremely costly. So costly that some debtors end up taking out additional loans just to pay them off. If you’re facing financial hardships after bankruptcy, avoid payday loans because they may only make your situation a lot worse.

Equity robbing mortgage loans. A post-bankruptcy debtor who has run into trouble paying his mortgage, may get the idea to refinance his house for a lower payment. However, post-bankruptcy debtors should avoid what’s called negative-amortization loans which can be a death blow to homeownership. Negative-amortization loans allow the debtor to pay only interest on their mortgage while the total cost of their mortgage balloons. Post-bankruptcy debtors should avoid these loans because not only is it nearly impossible to pay down the principal of the mortgage, the interest on the loan is tacked onto the balance creating an even larger mortgage than the one you started with.

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