May
10
Getting a Car Loan after Bankruptcy — Step Two: Start Hoarding
May 10, 2007 |
Step two — Start Hoarding You’re going to need some cash to get your credit going again. Secured debt credit cards require a cash deposit, and if you’re going to get a decent interest rate in the near future you’re going to need money for a down payment. You also want to save up cash to make sure you have an emergency fund to protect you from missing a payment and putting you right back where you started. The good news is that this should be easy — after all, you don’t have as many payments to make as you did before, right?
Some good strategies for saving money include:
- Limit the amount of cash you keep in your purse or wallet.
- Put away any debit cards you have.
- Don’t buy anything without thinking about it for at least 24 hours first.
- Eat out less and cook at home more.
- Give yourself a savings goal and reward — “If I save $1000 this month, I can take myself out for dinner.”
- Tell your friends and family that you’re focused on saving money — they’ll help you.
Think of saving money as an important life skill — just as important as knowing how to tie your shoe, how to cross the street, or how to count change.
In addition to hoarding cash, you also need to start saving every paystub, every bank statement, and every bill you pay for the next few months. Because of your recent bankruptcy, creditors will want to see proof of your income, residence, and that your bills are being paid on time before they will extend you credit. Start saving all of these important records so you’re prepared. Also, make sure to keep your bankruptcy discharge papers in a safe place because you’ll need those too.
Getting a Car Loan after Bankruptcy — Step Three: Get Secured Credit
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