Finished Your Trust Deed? Then, Take Back Control Of Your Life!

Trust Deed

Have you made the final payment for your trust deed and completed it? You might be feeling great since no other feeling can match the feeling of being debt-free. In fact, you have been waiting for months for this day to arrive. A lot of weight must have been taken off your shoulders. Finally, you are relieved that you can spend your next salary in any way you want. Whether you are thinking of saving the money or spending it on something important, or you plan to get another loan or mortgage, it's important to consider living debt-free once your repayment plan is over. The financial experts at Carrington Dean have decided to help you with a few tips to plan your life once your repayment plan is over.

Celebrate A Bit!

You shouldn't underestimate your achievement since you have really achieved something important in your life. In fact, you have been working hard for four long years to get rid of that mountain of debt, and you have finally completed that goal. You should take some money out of your next salary and do something nice for yourself. Create happy and cherished memories and celebrate this moment. In fact, you can buy a ticket for your favorite musical show or order a bottle of champagne. 

Maintain That Patience

Once you complete the trust deed, you should be patient for a few more months since the insolvency practitioner is likely to take some time to send you the discharge letter. Since each creditor has to be paid and appropriate paperwork needs to be filed, it is usually going to take another couple of months for things to settle down. You shouldn't worry about this delay. 

Focus on Budget

Thanks to the trust deed, you have already built up immense budgeting skills. You should be using this knowledge as a foundation to keep your future free of debt. In fact, you should save some of the extra income in order to build an emergency fund even though there is no harm in treating yourself once in a while. 

Having Goals Will Help You!

Since you have some disposable credit, now is the best time to plan for your future. Start writing down some ideas such as saving money for that down payment or taking that vacation that you have always dreamed about. On the other hand, you may have plans of becoming a business owner someday. In fact, this is the right time to create some dreams and use your newly found budgeting skills to figure out the amount of money you need to achieve your targets in life.  

Rebuilding Credit Score After a Trust Deed

You have been in a tough situation and your credit score would have suffered as a result. Find out more about Trust Deeds and how they affect your credit score. It may take some time to get your credit score back to a respectable level. Once you complete the trust deed, it will be on your credit record for the next six years. But it should not prevent you from having the plan to rebuild your credit score. Make sure you start slow and work steadily towards your goal.

The most recent credit events matter the most when it comes to evaluating your credit history. In fact, it provides you with an opportunity to add some good credit events to counter any past issues. Never miss out on payments in case you are already paying a mortgage. You shouldn't miss out on any other payment that you are supposed to be making, especially if the item isn't included in your trust deed. Secured loans are examples of such items.

Getting a credit card with a low monthly limit is another way of rebuilding your credit quickly. But you should opt for a credit card only if you are able to maintain discipline and it's the right solution for your current financial situation. Never try this option in case you don't have self-control with a credit card. These types of credit cards are especially for people with financial issues.

In fact, these credit cards have high-interest rates but it doesn't matter when it comes to rebuilding credit. You should purchase at least one thing with this credit card each month - whether you do your weekly shopping or pump fuel for your car. The most important thing is to make sure you pay off the balance in full when the bill arrives. Don't pay any interest on this credit card since it will be a disadvantage for you in the long run. If you keep on paying the balance in full as the bill arrives, it won't be long before you build a good credit score. 

Don't Get Into Debt Again!

You may be tempted to spend some extra money from time to time. But you should be extremely vigilant and not give in to these temptations. In fact, if you obtained a credit card to rebuild your credit, use it only for one or two monthly purchases, and don't give into your friends' demands to spend more money than you can afford. In case you are unable to resist their demands, try to spend some cash without using a credit card. Never forget the tough times you had to go through when paying your trust deed for four years. Avoid unwanted financial temptations using this experience as motivation.

Avoid Special Discounts or Deals on Store Cards

Try to minimize shop visits if you don't have enough self-control. In fact, you may consider leaving your purse behind in order to avoid the temptations to spend money unnecessarily.

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