Bankruptcy provides a means of discharging most of your debt to allow you a new financial beginning. Therefore it’s important to make the most of your fresh start.

One thing that should be foremost in mind is always keep your finances under control, so that you can avoid debt trouble in the future.  The following tips will help you stay out of financial trouble.

• Take a long hard look at your spending habits, and determine if you need to change some of them.
• Create a realistic budget and try to stick to it. If you can’t stick to your budget, then consider credit counseling.
• Keep a tab on your credit score, especially if you are trying to improve your credit.
• Stay clear of credit repair scams.  Don’t pay large fees upfront to a credit repair agency.
• Pay for things with cash, not credit.
• Don’t buy on impulse. When you see something you hadn’t planned on purchasing, think over it twice before buying
• When you are ready to get credit, shop around for the best terms and rates. Don’t just choose the first one available.
• Use only small amounts of credit to rebuild your credit history.
• Stick with one credit card, and perhaps one or two other small loans if necessary.
• Before taking a loan makes sure that the lender is a reputable one. Borrow amounts that you can comfortably pay off.
• Avoid joint obligations with people who have questionable spending habits whoever or however close   s/he might be.
• Get medical insurance as one of the main reason for bankruptcy is medical bills.
• Avoid high-risk investments, such as speculative real estate, penny stocks, and junk bonds.

Remember to tread down the road carefully because if caution is not heeded, your actions could lead you back towards bankruptcy.