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Archive for the ‘Building Credit’ Category

How to Rebuild Credit After a Texas Bankruptcy

October 14th, 2018 at 9:51 pm

Texas bankruptcy lawyerThough many people think a bankruptcy can ruin their credit for the rest of their lives, that is not necessarily true. When you file for a Chapter 7 or Chapter 13 bankruptcy, it stays on your credit report for at least seven years. Though that can be disheartening, you should not worry too much – you can start to rebuild your credit right after you file for bankruptcy. Often, people find that their financial situations and credit scores are even higher than they were before bankruptcy, given you can change the reason you became buried in debt. Though it can seem daunting, rebuilding your credit score after you file for bankruptcy is crucial. Here are XX ways to help build your credit back up.

Create a Budget

One of the first ways you can make sure you are on the track to financial success is by creating a monthly budget to keep track of your spending. There are numerous websites and apps that can help you do this, but they all essentially do the same thing – take your monthly earnings and subtract monthly expenses, budget for a few luxuries and then use what is left over to pay off debt, invest, or deposit into a savings account.

Open a Secured Credit Card or Use a Cosigner

After you have filed for a bankruptcy, credit card companies see you as a high-risk borrower, meaning there is a greater chance that they will not get their money from you. This can be a problem because one of the main ways of building credit is through credit cards. A way around this is opening a secured credit card, which is slightly different from a traditional credit card because you must put down a deposit to open the card. Another option would be to open a traditional credit card, but have a cosigner agree to pay off the debt if you for some reason are not able to.

Consider a Secured Loan

Credit scores are not all about credit cards – many types of debt are taken into consideration when determining your credit score, so it is good to diversify your debt. Again, lenders are going to see you as a high-risk borrower, so many will likely not allow you to take out a traditional loan, but you may be able to take out a secured loan, which functions much like a secured credit card. Secured loans allow you to borrow money that you already have deposited and some allow you to may payments toward a certain amount, though you would not have access to those funds until all payments were made.

Contact a Kerrville Bankruptcy Lawyer

Though filing for bankruptcy can be intimidating and even embarrassing for some, often bankruptcy is the only choice. By hiring a knowledgeable Boerne bankruptcy attorney, you can ensure that you are doing the right thing for your finances and your family. Bankruptcies can be damaging to your credit score, but there are ways you can rebuilt them. Contact the Law Offices of Chance M. McGhee to discuss your options. To schedule a consultation, call the office at 210-342-3400.

 

Source:

https://www.nerdwallet.com/blog/finance/rebuild-credit-after-bankruptcy/

 

Is Taking Out a Loan a Smart Way to Get Out of Debt?

January 6th, 2015 at 10:43 pm

getting a loan, San Antonio bankruptcy attorneyNo one wants to be in serious debt, however, carrying some form of debt is unavoidable. To start, everyone needs to build credit, and one of the most effective ways to accomplish this is by taking on “good” amounts of debt and paying it off in a timely fashion.

While credit can be a luxury for some, for others—especially those in a low income bracket—credit becomes a way to help with bills, groceries, and other daily expenses. Unfortunately, even a small amount of debt can be a precursor to bankruptcy if a person falls on hard financial times.

The truth is that filing bankruptcy is a smart decision in many cases. However, there may be other ways to solve debt problems. One method that many people consider is consolidating debt by taking out a loan. This often is an effective strategy, but it is important to understand a few basic aspects about debt and loans.

Understanding What Taking Out a Loan Means

When the money from a loan comes in, paying off credit cards and other debt can feel like a giant weight has been lifted. With a zero balance and no creditor phone calls, one might even feel like they are out of the woods. It is important to understand, however, that the debt is still there and requires payment.

Start Putting Money Away, Know How Much You Owe, and Do Not Add to the Debt

It is important never to lose sight of how much debt you actually owe. An effective strategy is to write down the total amount of the debt while slowly saving enough money to meet each payment—or to pay it off entirely.

There are a lot of benefits to taking out a loan. According to BB&T, loans often have lower interest rates, and placing all of the debt into one area can really make a difference when it comes to focusing one’s own finances. By sticking to basic fiscal wisdom, a personal loan can be a tremendously beneficial means of taking control of debt.

If you need to speak with a Texas bankruptcy attorney, contact the Law Offices of Chance M. McGhee. Call us today for a free consultation at 210-342-3400.

Call today for a FREE Consultation

210-342-3400

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