Tips for post-bankruptcy debt management

Moving beyond a bankruptcy is a chance for Connecticut residents to make a clean financial start. For many, this is a time of excitement, when everything seems possible and the burden of excessive debt has been removed. In order to make the most of this financial freedom, it is critical to begin making smart budgeting and debt management choices. 

One place to begin is by creating a comprehensive budget and automating that budget to the greatest degree possible. Using your banking software or a budgeting app can make it easy to meet all of your financial obligations and also set aside some money for savings. Some people even set their accounts up to direct a dedicated amount into a discretionary spending account, which can help to limit impulse buying. 

Most monthly bills can be set up on some sort of auto-pay. Those obligations can be handled without the need for direct involvement, whether they are bills that remain the same each month (like a car payment) or bills that vary from one month to the next (like a power bill). It is even possible to automatically transfer a set amount into a savings account each month. 

Automating monthly expenses is a great way to control finances in the months and years following a bankruptcy. This debt management approach is easy to incorporate, thanks to banking programs and apps that focus on budgeting. Taking the time to set these tools up can really help Connecticut consumers actively manage their financial lives, especially after going through a successful personal bankruptcy. 

Source: The Huffington Post, “2 Simple But Effective Tools to Help You Manage Your Money Like a Pro“, Allan Smith, Nov. 22, 2017