5 Steps to Recovery

Make a habit of paying your bills on a certain day of the month, usually your payday. Be thankful that you have the money to pay your debt.

Writing helps to create a roadmap for you to follow to achieve your hopes and dreams for the future. 

• Purchase a home? When? Talk to a licensed realtor. Tell the realtor the date you received your Chapter 7 or Chapter 13 Discharge of Debt. The realtor will be able to direct you regarding home loan financing. Most mortgage lenders require that you be discharged two (2) years with no negative credit information at the time of your application for a home loan.
• Purchase an automobile? When? It is relatively easy to purchase an automobile following the receipt of your Chapter 7 or Chapter 13 Discharge of Debt. Be careful! Make sure you understand the terms of your automobile loan: the amount of the loan, the monthly payment, the interest rate and the number of years that it will take you to pay off the loan. Do some “homework” to find the average cost of the make and model of the car that you desire to purchase. Shop for interest rates. A little “homework” could save you thousands of dollars over the next four or five years that it will take you to pay off the car loan.
• Save for your children’s college education so that your children will not have to be burdened with student loan debt? Payoff your own student loans? When? (If you have student loans, contact the lender and make arrangements to start making payments or discuss your other options. Get student loans under control so that you can improve your credit.)
• Take a wonderful vacation? When?
•  

This is your road map to financial freedom. Look at your payroll stub. You should be familiar with each deduction on your payroll stub: taxes, medical insurance, savings for retirement, etc. If there are deductions on your payroll stub for something that you no longer need, stop the deductions. Stopping useless deductions will save you money.

Remember that a little money saved per payday adds up to a lot over time! Remember, that you also need savings in case of emergencies. Just do it! 

Save $10 per week!
Save $20 per pay week!
Save $50 biweekly or semimonthly!
Save $100 per month!

To order a free credit report online or by mail:

You have the right to obtain a free credit report once every 12 months.
To obtain free credit report from Equifax, TransUnion, or Experian, go to the following website: www.annualcreditreport.com

You may also obtain your free credit report by contacting:

Annual credit report service:  877-322-8228

The three national consumer credit reporting agencies: