Bankruptcy or foreclosure can seriously tarnish your credit, but it is possible to repair any damage that has been done. This article offers tips to help you improve your credit and spending habits after bankruptcy or foreclosure.

After bankruptcy or foreclosure, it is imperative that you improve your credit and spending habits. The last thing you want to do is fall back into financial trouble. Here are some tips that can help:

Establish a Budget

One of the best things you can do to improve your credit and put an end to your bad spending habits involves establishing a budget, and more importantly, sticking with it. There are many different ways to structure your budget, but it is a good idea to keep it as simple as possible. Start by recording your daily expenditures, as well as your weekly income. There should always be more coming in than there is going out.

Pay Your Bills on Time

It is impossible to repair your credit overnight, but with effort and consistency, you can build a credit history that shows you in a positive light. To do this, you will need to pay all of your bills on time, especially installment payments and credit card payments. This keeps the bill collectors at bay and proves to creditors that you are serious about your financial responsibilities.

Get Help

If you find yourself slipping back into bad spending habits after your bankruptcy or foreclosure, you should get some help. Try talking to a trusted friend, or if necessary, consider professional credit counseling. There are many services that can offer you advice and assistance free of charge.