Debt can be a useful tool but it can also become an overwhelming burden. If the burden becomes too great one option for getting out from under that burden in Maryland is to declare bankruptcy. Declaring it provides a way to eliminate or drastically reduce existing debt, but the bankruptcy declaration remains on one’s credit report for many years and can impact a person’s ability to take on new debt. There are ways to bounce back from bankruptcy.

Two basic steps to take are to create and stick to a budget and pay with cash. Creating a budget can give one a good picture of one’s finances. Paying with cash prevents additional debt from building up. These are measures that will help one’s cash flow and there are also measures that can be taken to start rebuilding credit.

One of the most important steps to take is to pay bills on time. Late payments can be a red flag for the credit bureaus. Set up auto-pay where possible to eliminate the chance of a late payment. A secured credit card can also help a person rebuild a credit score. A secured credit card is somewhat like a gift card in that it is secured by money deposited onto the card itself.

Bankruptcy may seem like a drastic step, but it can be a useful tool in dealing with an overwhelming debt burden. A person in Maryland who is feeling financially overwhelmed may benefit from consulting with an attorney experienced in bankruptcy cases. A lawyer can take a look at one’s situation and discuss possible options with the client.