Recovering from bankruptcy

Editor's note: This is a transcript of the audio file.

Recovering from a bankruptcy is far from easy, but there are some simple things you can do to hasten your financial recovery. I'm Claes Bell with the Bankrate.com Personal Finance Minute.

Start out by making a detailed, realistic budget to help you keep spending under control and avoid getting back into debt. If you're having trouble staying within your budget, try dealing more in cash. Paper money gives you a physical reminder of how much you have to spend at any given moment.

Rebuilding your credit is also key, starting with being very careful about paying your bills on time. Being late with payments is no way to get creditors to trust you again.

Finally, even if you're wary of credit cards, it's important to realize getting a new one is the only way to rebuild your credit. Many banks offer secured cards that allow you to work your way up to a full credit card over time by starting out with a small deposit.

For more on this and other personal finance topics, visit Bankrate.com. I'm Claes Bell.