Many people in Mississippi who struggle with high levels of debt might have thought about filing for bankruptcy but then not done anything about it because of fears that it might ruin them financially forever. This is far from the truth. In reality, bankruptcy is designed to not only help consumers get our from under mounds of debt but to be a stepping stone to a brighter financial future. Knowing how to make this happen is important.

NerdWallet recommends that people fresh out of bankruptcy take the time to develop a good budget that includes regularly putting some money away in savings, even if it is a modest amount. Also important at the outset is to review one’s credit report and clean up any incorrect information that may appear. From there, monitoring a credit report and credit score carefully should be done.

As explained by Forbes, consumers who want to rebuild their creditworthiness might want to consider opening up a secured credit card. This is a credit card that requires the account holder to provide a deposit amount for. This may well be the full credit limit on the card. Then, the card should be used and paid off every month ideally. All purchases should be kept to small amounts so they do not exceed roughly 20 percent of the total credit limit.

By showing creditors that they can responsibly use credit, people can improve their chances of getting unsecured cards and, over time, cards with better terms like lower interest rates.