Many people who consider personal bankruptcy worry that their credit will become permanently damaged, but this does not need to happen. The rebuilding of credit after personal bankruptcy can start as soon as you have been discharged. The personal bankruptcy advisors at Fox-Miles & Associates Inc., Licensed Insolvency Trustees, have taken steps to improve your credit score after bankruptcy.

Learn more about personal bankruptcy.

Create a monthly budget

The first step to rebuilding your credit score after personal bankruptcy in Edmonton is to take control of your finances by creating a detailed monthly budget. Account for your regular expenses and set aside a little for your monthly savings for emergencies.

Make a plan to pay your bills on time

When creating a budget, you need to prioritize paying bills and debts. Rent, electricity, cable, internet, cell phone bills, and other monthly expenses should all be on your list. Input them into your calendar, so you don’t accidentally miss a payment and incur additional fees. Paying your bills as soon as possible can be a good strategy.

Tax payment plans in Canada

Apply for a secured credit card

A secured credit card is a card that requires a security deposit. Start using it for a few small monthly expenses, paying your monthly bill on time and in full. Making payments to a secured credit card will contribute directly to rebuilding your credit after personal bankruptcy in Edmonton.

Increase your credit limit

Once you’ve managed the monthly payments to your secured credit card for a while, you can request a credit limit increase to show greater responsibility. Make sure you only ask for an amount you can handle, and try to wait at least six months before requesting an increase.

Switch to an unsecured card

You can apply for a regular, unsecured credit card after a year to a year-and-a-half of responsible payments to a secured card. Keeping the same mentality as you had with your secured card is essential to stay on top of expenses.

Keep an eye on your bank account

If personal bankruptcy seems the best financial option for you, Fox-Miles & Associates Inc., Licensed Insolvency Trustee, will walk you through the process. Our Edmonton personal bankruptcy advisors will also help ensure you are all set up to rebuild your credit afterwards.

Take Control of Your Debt with Personal Bankruptcy in Edmonton

To learn more about personal bankruptcy in Edmonton, don’t hesitate to contact Fox-Miles & Associates Inc. Licensed Insolvency Trustee today.