Bankruptcy and Budgeting how to Start over

After having declared yourself bankrupt, where does one go from then on in?  How does one even begin to start all over again?  It is indeed correct that bankruptcy can not only wipe out all of your outstanding debt.  It is looked upon as the ‘last resort’ in once and for all, getting rid of all of the debt that has dragged you down. Of course, this is the ultimate aim of those who are in chronic financial trouble.

However, it is also true that bankruptcy can bring its own problems too.  What this means is that once someone is declared bankrupt then all of that debtor’s assets are seized.  A debtor’s home can also be seized to pay off the debt owed. Career options are limited – as a debtor cannot then join the financial management of a company. 

Borrowing is limited, as restrictions are put in place – in reference to applying for a mortgage, and other higher purchase items. The above are just some of the problems that debtors who become bankrupt, face.  However, with hard work and perseverance, someone who is declared bankrupt can begin again. It will take effort and time, but it can be done.

Obviously when one is declared bankrupt, harsh decisions have to be made.  This is in regards to the now limited spending power you will have. This means that no longer will you be able to purchase what you want, but rather, it would be a case of purchasing what you ‘need’.  The word here is austerity.

Being frugal from now on, with your limited amount of money, means exactly that. Watching every penny spent will go some way into helping you get back upon your financial feet again. So in stating the above, savings can be made throughout the days, weeks and months.  Save on your energy bills by purchasing an energy wireless meter.

These meters calculate the amount of energy your electrical appliances use up within your home. They also calculate the cost of just how much electricity, gas and/or water you are also using.  By purchasing an energy meter, this will save you money in the long run. You can then bring down your energy bills by estimating just how much you will spend, over a set period. 

Money is also saved when faulty electrical appliances are thrown away.  By making sure that all faulty electrical appliances are discarded you will see your electricity bills decrease. Investing in double glazing is another way to save energy escaping from your home.   The purpose of double glazing is to stop heat loss within the home.

Therefore, with good double glazing you will be saving a large amount of money in heating bills over a period of time. Savings can also be made by making sure all electrical lights and appliances are off, in rooms that are empty, and that all doors are closed and windows shut.  Exchanging your car for a pushbike can see your savings soar – in reference to car tax, road tax, and motor insurance.  Plus, the gain in your personal health is boosted too. 

By purchasing the things you need instead of the things you want, will also see your savings soar.  This is the mantra that those who are deep in debt, or who are bankrupt, have to live by.  By budgeting for your future, you will secure your future financially, By accounting for every cent/penny spent only then will you begin gain some kind of financial foothold and stability. 

Every single aspect of your life will have to be changed. And this will invariably mean cutting back on those things you may have been used too before.  In reference to food, there are many people these days that now grow their own food. Obviously, the benefits of this are twofold, your health is improved and money is saved.  Find out what crops would be suitable to grow for the environment that you are living in.  By doing this you will have your own food source, which will soon be ready and available.  

Bankruptcy can be changed from a negative into a positive.  But it will take time to get back on an even keel.  To sum up, bankruptcy is never easy to come back from.  However, despite everything, it can be seen a starting with a clean slate.  Do not use credit cards, as these can be seen as ‘invisible money’. Credit cards are lethal weapons in the wrong hands and they are more than likely to have contributed to your bankruptcy.  

By cancelling your credit agreement with the bank or financial supplier of the card [ if you can] you will be saving money on credit card fees, and APR  -and having to pay an Annual Percentage Rate if you are late in paying your credit card bill. Meet and conquer all of those enemies that have helped placed you in bankruptcy.

Credit cards, catalogues, higher purchases, wasteful spending – spending money on what you want, instead of what you need.  These are the things that have contributed towards your financial predicament.  By changing your mindset on how you spend your money in the future, you will be getting yourself out of future financial predicaments.