An Effective Solution to Severe Financial Crisis
Using bakruptcy as a solution to solve
your bad financial status
Bankruptcy can be defined to be as a bad financial status where one is unable to fulfill their loan or mortgage
agreements, due to lack of sufficient money in the bank. In most cases, people become bankrupt due to poor cash
management skills and spending beyond their means.
Sometimes those facing financial difficulties may try and make monthly payments, but still find their balances
increasing. This can be caused by factors such as incurred interest charges, over-limit or late fees charged by the
creditor, etc. Such conditions can make one feel as if they are trapped on a financial treadmill, always working
hard but never making any meaningful progress.
Often looked at as a bad thing, bankruptcy can be a positive and constructive solution to
your financial problems
Bankruptcy Tips and Advice
However, all hope is not lost as there are effective solutions to this bankruptcy problem. The following are
some quick tips that help you to deal with bankruptcy.
» You could pay off debts faster by adding monthly salary payments to your principal
balances. This helps in reducing interest charges that could have otherwise been added for defaulted payments -
thus ensuring that you save lots of cash in the process.
technique that's closely related to the above is consolidating debts into a single reimbursement structure. Each
pay-day funds would automatically be deposited into your savings account using the electronic funds technique. This
money would gradually be used to pay creditors and settle the debts that you have accommulated.
your own customized budget that shows how each dollar is spent.
your current financial situation and make coherent goals to improve it.
» Contact a
professional debt counselor for advice on how to override your current situation.
How to Increase Your Credit Score after
Many people get confused when trying to find the most appropriate ways of enhancing their credit scores. This
can be done without incurring any extra costs. For example, one can bounce back by acquiring either a
revolving or non-revolving credit line, and then repaying the borrowed sum on a regular basis.
Since bankruptcy is usually filed as public information and documented in official records, this could make it
somewhat difficult to submit credit. One can't hope to mend their scores without first availing a new credit.
Hence, it's appropriate to look for safe ways of acquiring loan and slowly building credit worthiness after
VA or FHA Insured Loans
Securing a mortgage advance to buy a new house is probably the best way of getting back in track financially,
note that a history of timely home mortgage payments may help you reconstruct your credit history even after
bankruptcy. The Veteran Administration and Federal Housing Administration loans are particularly availed to those
who want to purchase a new house after insolvency. They are easy to obtain provided you follow the correct
application procedure. For instance, to obtain the FHA insured advance applicants should have made 12-24 successive
payments on their respective accounts.
As for VAs, one must wait for at least 2 years to get a loan after bankruptcy acquittal. Another effective
technique is applying for payment deduction or secured credit cards from reputable financial institutions, one can
get these cards within 6 months after application. Moving on, if you're in Europe and would like to get free or
subsidized healthcare assistance then apply for the EHIC card. Registration is free and can be done online.
Ruby Andrew’s author bio
Ruby Andrew lives in Bristol, UK and is an avid reader and blogger. Since her early years
she’s had a passion for writing. Her articles have been published in leading UK newspapers. Her areas of interest
are food, reviews (Book/Movie), Travel, Fashion, Lifestyle, Fitness and Health. She works as a guest blogger on her
chosen areas of interest and currently writes on behalf of EHIC card.