We hope you will take full advantage of your bankruptcy and, if you have not already, start living on a Cash Basis.
Do not buy it unless you have the cash in your pocket.
Save at least a little money for emergencies.
Use a checking account debit card for reservations and internet purchases. U.S. Bank even offers debit cards that earn frequent flyer miles.
Throw each new credit card offer away with a chuckle.
Contribute as much as you can to take full advantage of any 401k or other matching contribution plan at work. This is free money.
Avoid whole life insurance, buy term life instead and save or invest the difference.
In doing so, you can:
Never have another creditor call at home, work etc. again.
Never have another credit card bill come in the mail.
Rebuild your credit by making rent/mortgage and car payments on time every time.
If you would like to borrow in the future for a major purchase we suggest that you:
Make every rent/mortgage/car payment etc. on time, every time.
Maintain steady employment and do not take on any new debt.
Keep your income to debt ratio as favorable as possible.
Visit with your lender well before you intend to borrow and get their advice on what they are looking for in order to improve your chances of borrowing.
Shop, shop, shop around. A simple method for all major purchases is to check with several banks/dealers etc. and narrow your choices down to two. Then be honest with each about what the other is offering and see if they will sweeten the deal to earn your business.
When it comes time to buy a home, we suggest:
Realize that realtors and lenders make more money if you spend more money.
Avoid the pressure to buy as much home as you can qualify for.
Buy a modest home and finance it for 10, 15 or 20 years at the most and you will save an enormous amount in interest. You will also build equity much quicker so you can avoid being upside down if you do need to sell.