What the Myth of Sisyphus Can Teach You About When It’s Time to File Bankruptcy

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How do you know if you are in over your head and the time has come to seriously consider bankruptcy? 

Consider this story:  In ancient Greek myth, there is a story of Sisyphus, who was a king condemned by the gods to roll a rock to the top of a mountain as an endless, repetitive task.  At the point in which the rock finally reached the peak, it would then roll back down to the ground, forcing the king to begin the monumental task of rolling it back up the mountain. 

Are you like Sisyphus when it comes to your finances?  Do you find that regardless of how much effort you put into trying to dig out of debt, the weight of it takes you right back where you started?  If so, then it’s time to seriously consider bankruptcy as a way to finally conquer your financial goals and put you on better footing.  No one should live paycheck to paycheck and it is a system that is unsustainable.  The first week that you miss a paycheck due to illness or job loss, you’re up the proverbial creek without a paddle.  That’s certainly no way to live! 

Read below and see if any of the following situations apply to you.  If one or more apply, bankruptcy is most likely your best option:

1. I spend more than 20% of my income on bills.
2. I have to use my savings sometimes to pay my monthly bills.
3. I often use my credit cards to pay for necessities because I don’t have the cash on hand.
4. I have more than four major credit cards that I use regularly.
5. I often have to call on friends/family to bail me out of financial distress. 
6. I have had to finance my car for six or more years just to make sure the payments were low enough for me to afford.
7. Whenever I apply for credit, I usually need a co-signer. 

If any of these sounds like you, give us a call for a free consultation.  305-663-3281

Rebuilding Your Credit

Rebuilding your credit after bankruptcy can be both a financial and emotional experience. You will feel a great deal of relief once you get your bankruptcy discharge—it’s the fresh start you deserve!

Once your bankruptcy has been discharged; rebuilding your credit begins immediately. After the bankruptcy, be sure and pay any continuing obligations, such as a car payment or rent on time. Being on time on each of your commitments is the surest way to raise your credit score as quickly as possible. 

Within three months of your case being completed you should apply for a new credit card. Either approach your bank or apply on www.creditcards.com for a low limit MasterCard or Visa. Expect to pay a hefty annual fee, but it is worth it. You will immediately raise your credit score if you make your payments on time and pay in full. Be smart, use the cards for purchases you need, not just want and make sure to set the money aside in advance to be able to pay the bill. Remember, the card is not just a “credit card” it is a credit TOOL.

After a few months with the low balance card, you will be solicited for other credit cards with higher limits and lower annual fees. You should accept one of these cards, but please be smart. Don’t use the cards for items you can’t afford. Remember, this is a tool to rebuild your credit. You should have the money available to for each purchase you make. Don’t let the credit card company charge you interest, pay each bill in full and always on time.

After a few months with the second credit card, your score should be climbing to the mid-600’s. This is when you can consider using newly strengthened credit to purchase bigger ticket items, such as a car. Speak with a lender before you go to the dealership. Know how much credit you have and how much of a down payment will be necessary. Remember, this too is a tool to rebuild your credit.

This simple plan is a 18-month post bankruptcy credit repair program. I have had thousands of clients succeed using these steps. A 700 credit score is between 1 ½ to 2 years away for most of my bankruptcy clients. Get started by eliminating your debt and eliminating your stress. Bankruptcy is the ultimate financial stress reliever.

To learn more how to rebuild your credit post bankruptcy, or to learn how filing bankruptcy can let you improve your credit score quickly, call (305) 663-3281 now.