How can you treat your credit card after bankruptcy?

 Posted on August 30, 2021 in Chapter 13 Bankruptcy

Falling into debt often serves as one of the most difficult points of your life, and getting back out of it can take a lot of time and effort. Needless to say, once you get back out of it, you want to do everything in your power to keep from falling back.

Some areas of bankruptcy may have been out of your control, but others you have some measure of sway over. This includes your credit card, how you use it and the potential debt that can come from misuse.

Change how you look at your card

The Balance looks into how you can treat your credit card in the aftermath of bankruptcy. Credit cards often serve as a major point in bankruptcy cases, as they tend to end up misused and you may view them in the wrong light. Thus, the first thing you can do is change how you view yours.

Do not treat your credit card like a way of borrowing money you do not have. Instead, treat it like a debit card and only spend what you could feasibly pay back that same day. This keeps you from falling into the trap of buying over your means.

Always prioritize your payments

When you buy within your means, it also allows you to pay off your bills on time and in full. This lets you avoid interest and late fees, which often contribute to debt by stacking up faster than you can keep on top of.

Finally, make smart decisions with your card. Do not loan it to other people or get cash advances, considering the steep interest rates that go along with these. Do not circumvent your credit limit by signing up for multiple credit cards either, as this just gives you more bills to keep track of.