Following a bankruptcy, there will be a lot of mixed emotions and concerns for the future. Many feel a sense of shame or believe that they will not be able to recover from this financial setback. You may even believe it is impossible and won’t know how to rebuild credit after bankruptcy.

The reality is very different. Bankruptcy is often the wisest course of action to take for your financial health and to protect your other assets. Many who do declare bankruptcy are comforted to discover that there is a way back to good and healthy credit in the future.

If you are planning to set yourself up for future success following your bankruptcy, then read on to learn how you can do this. Here are ten tips on how to rebuild credit after bankruptcy:

1. Pay all of your bills on time

You need to do all that you can to pay your bills on time. This includes your credit cards payments, cell phone, hydro, internet and everything else that you can think of. While this won’t build up your credit score right away, it will be sending the right signals to the credit bureaus that you are able to manage your finances.

2. Cell phone contracts

If you don’t already have a cell phone contract, you should get one. This is a great way to demonstrate that you pay in full and on time each month. This alone can go a long way to repairing the damage done to your credit.

3. Secured credit card strategy

You will likely only be able to apply for a secured credit card following a bankruptcy.  A secured credit card is when you give the bank cash to secure the credit card that they will lend to you. You should use this credit card for one or two planned payments each month and pay it off in full. Building this history can go a long way to helping your credit score improve over time.

4. Don’t go running all over town applying for credit

You should wait at least 6 months between credit applications. If you apply for too much credit it too short a time period it can have a negative effect on your credit score. This is just one of the many factors listed here that affect your credit score but it is a very important one.

5. Live within your budget and your means

This should go without saying, but you need to make sure that you do all that you can to keep yourself from getting into too much debt again. This means adhering to a strict budget and making sure that you don’t overspend no matter how tempting it is.

6. Don’t take credit just because it is offered to you

If you want to rebuild credit after bankruptcy, you must be smart with your financial decisions. The last thing that you want to do is to take on more credit. You should be judicial when you apply and accept any credit that is offered to you.

7. Avoid payday loans

These can ruin you financially and leave you unable to recover. Payday loans are designed to be impossible to pay back should you miss even one payment. This type of loan should be avoided at all costs.

8. Make smart financial choices

When it comes to making any large purchases you should make sure that you actually need them. Impulse buys can be very problematic and cause you to spend a little here and a little there and before you know it you are thousands in debt. This should be avoided at all costs. Even when something is on sale, that is still money that you were not planning on spending.

9. Stay positive

It can be embarrassing to admit that you have made some mistakes when it comes to your finances. You need to bear in mind that this is going to be along the road to getting your finances on track and that this doesn’t need to define you. There is a light at the end of the tunnel. In no time, you will be able to look back on this trying time and congratulate yourself for being so responsible and getting through this.

It is very important that you talk to your friends and family and discuss how you feel about it all. You might be surprised at how much some perspective helps.

10. Make plans for the future

You might not be going on vacation somewhere sunny any time soon, but that doesn’t mean you can’t be excited about what is to come. You will be able to recover financially.

If you have any questions or concerns about the right way to do this, then you should get in touch with a professional who is experienced enough with bankruptcy to help you to navigate the world of credit recovery. When you have a plan in place, feel free to get excited about future plans. This can be a great motivator to keep you on track and focused on your goals.