Bank finance articles and tips

You have made it through the bankruptcy process and your discharge date is finally almost here. Your hard work and dedication has paid off. Congratulations: You are finally officially debt-free.

But don't pat yourself on the back too quickly. If you've been tightening the belt around your finances, you be tempted to go on a spending spree or fall back into your bad financial habits. This is why most bankruptcy courts require consumers to undergo credit counseling classes before they can have their debts discharged. However, this isn't to say that everyone takes these lessons to heart - and dispelling years of bad financial habits with just a few weeks of credit counseling classes doesn't always work.

To stave off another potential financial disaster - or the need to file bankruptcy again - employ these savvy strategies to stay debt-free for the long haul:

? It took you years to get into the kind of debt that made you file for bankruptcy in the first place, but you do not want to start down the same path and end up back into debt. Make up a strict budget that fits how much money you are currently making. Make sure you allocate a little more money towards your emergency savings fund. This will help keep you from running for your credit card when unexpected expenses pop up.

? If the temptation is too much for you, find savvy ways to limit access to your new credit cards. One classic move involves freezing your credit cards (literally), while another smart strategy involves carrying only one card with you when you're out and about. And if the temptation to spend is too much, don't carry any at all. Just be sure not to give up on credit cards altogether - if you want to rebuild your credit score quickly, you'll need to prove to lenders that you can pay off any credit card bills you rack up.

? Save the worst reminder of your old debt. Whether it was a collections notice from your bank or a massive credit card bill, keep it around to give yourself daily reminders of how good it feels to finally be in control of your finances - and out of the bankruptcy courts.

Make sure to apply a few of these savvy strategies to stay debt-free for good - and you will never have to utter the words "drowning in debt" ever again.

Reed Allmand, sponsoring attorney for Bankruptcy.net, is constantly looking for ways to provide the best financial information for his clients. Whether you are considering filing for bankruptcy, or are currently going through a Chapter 7 or Chapter 13, visit http://www.bankruptcy.net for up to date news and information you need to know.

By Reed Allmand
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