When you have gone through the insolvency process, you might feel like you aren’t sure what your next move should be. It will always take some time to get back to where you were before insolvency, but there are some things that you can be doing as an individual or business owner to get things back on track. Principle Insolvency is here to talk about what life looks like after the insolvency process, and what you can be doing to recover from it.
Update Your Credit File
Part of the insolvency process is making sure all your debts are cleared. When you get to the point that all your debts have been cleared, you will want to make sure that your personal credit file is up to date. Some might have a debt repayment order (DRO). If that is where you are, you will need to make sure that it is showing that you have paid those creditors. Others might have been discharged from a No Asset Procedure which is another term for bankruptcy. If this is the case, make sure that your credit file shows that. There are three credit report agencies in NZ. Make sure you check them all:
– Centric
– Equifax
– Illion
Ways to Improve Your Credit Rating
One thing that you will have to focus on after the insolvency process is building up your credit rating again. This is going to take time and there is simply no way around that. A credit rating is what gives lenders confidence in loaning you money for things like a house or other large purchases. If you take on small purchases, make sure that you’re making those payments on time so that you can slowly start to see that credit rating rise again.
Make Sure You Manage Your Money
Another thing that you are going to want to do after facing insolvency is to make sure that you manage your money wisely. This is going to take some discipline, but it is the only way to avoid this issue again in the future. Make sure that you set a budget and stick to as best you can. Don’t live outside of your means. It is also vital that you avoid taking on any bad debt. This would include credit cards that you can’t pay off in full every month, a hire purchase that you can’t pay off before the interest free period is over, and credit card offers that seem to be too good to be true. These are all enticing ways that you can end up getting into trouble again financially.
Insolvency Services in Auckland, Hamilton, Levin & New Zealand Wide
If you are financial trouble, you can turn to Principle Insolvency to help you figure out the best course of action to help get you back on track. We handle insolvency and liquidation cases to help strengthen individuals finances. Call us today!