How to rebuild after a Bankruptcy or Consumer Proposal (3 Minute Debt Break)

After completing a Bankruptcy or Consumer Proposal, rebuilding your credit can feel nearly as daunting as getting out of debt. But just a few steps every day will get you where you want to go. The following steps will help you focus on your goals, outline your process and visualize the reward that’s waiting for you at the top.

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Step One

Upon completing your Bankruptcy or Consumer Proposal, the very first thing you’ll want to do is request your credit report from Equifax and TransUnion and check it for accuracy. Do yourself and your future financial life a favor: Become intimately familiar with the good, bad and ugly details of your credit report and immediately fix any errors.

Step Two

Think about your financial destinations and write them down. Depending on your goals, certain types of credit products may help you get there. Goals are achievable for you. But only with the right process, commitment and a clear sense of direction. 

Step Three

Pick Your Path. Not all paths to rebuilding your credit will suit your unique situation and goals. You can try a secured credit card. Your lender will keep your deposit – and pay you interest on it – until you qualify for an unsecured card. Your limit will be low, but ensure you keep your balance even lower – if not zero – and only use the card for something you will pay back immediately. 

Eventually, you can start looking at longer term credit products like an instalment loan or line of credit. An instalment loan with a set payment schedule is one of the safest ways to rebuild your credit, as you are unable to access the money you’ve repaid. A line of credit is a revolving credit product with a large credit limit. These offer low interest and low minimum payments. 

There’s an old proverb that says, “if you want to go fast, go alone. If you want to go far, go together.” It’s just as true if you’re working to rebuild your credit. Learn from other’s experiences and expertise. Explain your goals to a financial professional. Ask for recommendations and help evaluating your options.

If you’re currently struggling with overwhelming debt and wonder whether a Life-Changing Debt Solution is right for you, consider scheduling a Free Confidential Consultation with a Licensed Insolvency Trustee to learn your options. Your Licensed Insolvency Trustee will review your entire financial situation, seek to understand your goals and challenges and identify opportunities for you to achieve the financial fresh start you need and deserve. Whether you qualify for Bankruptcy or a Consumer Proposal, or would benefit from one of several other paths to debt freedom – such as a consolidation loan or budgeting advice – they’ll help you choose the best path to defeat your debt once and for all.

 

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