Managing debt
Woman working on papers
debt
6 ways to bounce back from bankruptcy

Pay yourself first
Next
2 of 8
Back
Pay yourself first

It may sound counterintuitive, but one of your first steps after bankruptcy should be rebuilding your savings, which were likely wiped out by filing, says lawyer David Leibowitz of Waukegan, Ill.

"Paying yourself first gives you a financial foundation to protect you against unexpected events in your life," says Leibowitz. "It's much better to have a rainy day fund than to have to depend on friends, family, relatives or even worse, payday loans."

According to Leibowitz, 5 percent of your net income can go a long way to rebuilding savings. And if you set up a recurring, automatic withdrawal from your checking to your savings account, you won't even have to think about it.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

Debt Adviser

Don't be seduced by this debt plan

Dear Debt Adviser, I have about $50,000 of debt on credit cards. My credit rating is still high. I am thinking about a debt consolidation loan. Will that adversely affect my credit rating? -- DT Dear DT, The cliche... Read more

advertisement

Connect with us