Although you’re likely to lose your credit cards in bankruptcy, you’ll have some big decisions to make once you come out the other side.
There will come a point when you once again have to consider the benefits and risks of carrying a credit card.
If you’re able to avoid this, it may be in your best interest to do so. When you don’t have a credit card, you can’t abuse a credit card.
Here are some tips for avoiding credit card overspending after bankruptcy:
- Remember the past: You know this got you into trouble in the past, so you should take notice of what went wrong and how to avoid the same in the future.
- Watch your balance: Many people make the mistake of keeping a close watch on their credit limit, as opposed to their current balance. If you do this, you could find yourself overspending without realizing it.
- Don’t take on too many credit cards: This is a common mistake among all types of consumers. It can be difficult enough to manage one credit card, let alone several.
- Be careful of what you buy with your credit card: It’s easy to go overboard with a credit card since you don’t need the cash right now to make a purchase. Unfortunately, this approach will eventually catch up to you.
With these tips guiding you, it’s much easier to avoid credit card overspending after bankruptcy.
Although bankruptcy will change your life in many ways, once you realize the benefits, you may come to find that it’s the best way to proceed.