Credit card debt is one of the biggest reasons that people turn to bankruptcy. This gives rise to the myth that credit cards are always a bad idea and that you should avoid them at all costs.
That’s not always true. One of the best ways to build your credit back up after bankruptcy, for instance, is to use secured credit cards to show lenders you can handle debt and to increase your credit score. Cards can be used properly so that they don’t create excess debt. Here are a few tips that can help:
These tips can be very helpful after you declare bankruptcy to help you avoid getting into financial trouble again. If you haven’t declared yet, they can also help to illustrate the potential pitfalls of cards and why these issues exist. Make sure you are aware of your legal options to seek financial freedom.