The fresh start that bankruptcy provides isn't just the discharge of difficult to pay debts; it is also an opportunity to learn knew habits that will increase the chances of financial success. However, there are some common mistakes that many post-bankruptcy debtors make when they finally begin using credit cards again.
Let's take a look at a few of those mistakes:
- Failing to fully understand the credit card terms. Many post-bankruptcy debtors are so excited to receive credit card offers after their bankruptcy that they end up skimming over the terms of the credit card. This can result in signing up for credit cards which are stuffed with many fees and high interest rates.
- Placing irresponsible authorized users on their credit card account. Many post-bankruptcy debtors make the mistake of trying to "help" out friends and family by placing them on their credit card accounts as authorized users only to be left with a large bill after those people fail to pay.
- Co-signing credit card accounts or other loans for friends and family with credit issues. Post-bankruptcy debtors must remember that if they are not paying their own bills their friends and family members are even less likely to pay a bill which was co-signed.
- Failing to communicate with creditors early and often when they run into financial problems. Post-bankruptcy debtors are not immune to financial issues after their bankruptcy discharge. But when those issues do come up, they must make sure they communicate clearly and early with creditors.
- Failing to get any creditor agreements in writing. As we mentioned in point #4, sometimes there are financial issues which require us to work something out with creditors. But post-bankruptcy debtors need to make sure that they get all agreements in writing.