Money is a topic that is often on the minds of many Wisconsin residents and those around the world. Some may think about how to invest, and others may be looking forward to their next paychecks. Others still may worry about meeting everyday needs due to the amount of debt with which they are burdened.

If you fall into the last group, you may struggle with stress and anxiety over your finances on a daily basis. You may count every dollar, wonder whether to spend money on something you truly need and despair over the seemingly never-ending bills. Though you may have considered filing for bankruptcy, you have concerns over whether completing the process would leave your credit in a worse state than simply contending with your debt on your own.

Building back your credit

Certainly, filing for bankruptcy will have an impact on your credit score. However, once you successfully complete the process, you may have much less debt to handle, which gives way to you rebuilding your financial security. It may take some time to reach your credit score goals, but in reality, your score before filing for bankruptcy likely is not great. If missing payments and defaulting on loans is your current norm, your score has probably already suffered considerable damage.

After bankruptcy, some actions you could take in efforts to rebuild your credit include the following:

  • Utilize a budget to track your money to avoid overspending.
  • Pay your bills on time. If you have trouble remembering due dates, setting up an automatic draft payment or setting reminder alerts may help.
  • Determine whether you can add your utility bills to your credit report in efforts to boost your score.
  • Use cash more than cards. Seeing your money physically leave your hands may make you less likely to overspend.
  • Look into using a secured credit card, which is backed by funds that you put down up front.

Though it may seem intimidating to file for bankruptcy because it involves legal proceedings as well as putting your financial difficulties out into the open and following many steps, you may find the process well worth it in the end. Additionally, you do not have to feel alone as you move forward with bankruptcy. A knowledgeable attorney can guide you throughout the process, ensure that you understand every action necessary and answer any questions you may have.