Falling into debt is unpleasant, and filing for bankruptcy to get out of it does not feel much better. However, it is a step in the right direction.
After filing for bankruptcy, it is important to start forming good financial behaviors and habits to avoid falling back into debt in the future. This includes tackling how you view credit cards.
Treating a credit card like a debit card
CNBC Select discusses ways to avoid falling into credit card debt in the future. First, start treating your credit card like a debit card. This means refusing to spend more than what you currently could be able to pay off.
If this is difficult for you to self-regulate, consider getting a secured credit card. With this type of card, you put down a sum that the bank uses as collateral. They will take it to pay off any debt you may accrue, keeping you from going into debt and also preventing you from spending more than you have.
Change bill payment habits
On top of that, make sure to change your bill payment habits. If you did not pay your bill on time or in full every single time, this is the first thing to change. Paying your bill off in full prevents you from stacking up interest charges, and paying it on time allows you to avoid late fees.
You can also eschew credit cards altogether and instead opt for a combination of cash and debit cards. However, building good credit is important, especially in the aftermath of bankruptcy, so this is not necessarily recommended.
