Many Tennessee residents feel stuck financially. They may work hard, earn a fairly decent income but still struggle to meet their financial obligations. This scenario could affect anyone, and often, once debt accumulates, it is difficult to get rid of it. Even if individuals are making monthly payments, the amount may seem to never decrease.
This scenario may seem familiar to you, and the dread of waking up knowing that you have overwhelming debt may affect your well-being in various ways. You may have thought about filing for bankruptcy before, but perhaps you never followed through because you thought it would cause more harm than good. Fortunately, that does not have to be the case.
You can repair your credit
Certainly, filing for bankruptcy will affect your credit score and will remain on your credit report for approximately 10 years. However, the effects of filing for bankruptcy do not have to remain a permanent mark on your score or record. In fact, even before the mark on your credit report falls away, you could take steps to start repairing your credit. Over time, you could find yourself with a respectable credit score and creditworthiness.
How can you do it?
Luckily, various options exist for rebuilding credit after completing bankruptcy. Some of the options you may find useful in the future if you do move forward with this debt relief route include:
- Becoming well acquainted with your credit report and the information it contains
- Remaining responsible with your credit use by keeping balances low
- Making monthly payments on time and in full when possible
- Applying for secured credit cards and secured loans that could allow you to take out credit with less risk while still building your creditworthiness
- Asking someone with good credit if you could become an authorized user on their credit account
- Staying updated on your credit score and ensuring that any changes are legitimate
- Practicing patience and understanding that rebuilding your credit may not happen over night
If the idea of never being able to qualify for a loan or completely wrecking your credit score is holding you back from debt relief through bankruptcy, you may want to gain reliable information about the effects of bankruptcy. The outcomes will differ on a case-by-case basis, but you may find that this option could allow you to regain stable financial footing.