With that being said, mortgage rates reset and people could no longer afford their homes. However, if the person can get over the physical aspect of losing their home they have a chance to be in a better position over the long run if they plan ahead and file bankruptcy.  People are now planning their defaults and taking advantage of housing prices dropping. In addition, job losses began to mount and unemployment began to rise and the bankruptcy lawyer found he was very busy

Planning ahead for bankruptcy

Once you realize you can no longer afford your home you need to do your research and find out which bankruptcy you qualify for. You can file bankruptcy and erase credit card debt and not owe any money at all on previous debts including your home debt if you qualify for chapter 7.

Once you file, don’t reaffirm your home and quit paying your mortgage. The money you save living rent free you can sock it away and buy house on a land contract for cheap and then refinance it in three years. The house you bought for cheaper will have appreciated and you will have established a positive credit rating.  Once you file bankruptcy the mortgage company by law can not continue to foreclose on your home. You save time and this should be last step.

People will tell you that you will ruin your credit, if you can afford your home and you lose it to foreclosure they your credit will be bad and you should file bankruptcy and wait the year it will take for the mortgage company to kick you out while saving your money the whole time.

Banks and other credit card providers have different set of requirements. However, there are common ones which include a filled-out application form, proof of income (a pay slip or an annual tax return form), proof of residence which includes any bill that states your actual address, ID pictures, and the like. These items are just some basic requirements needed by a credit card provider. In order to be accurate, you may want to call their credit card customer service to know detailed information about their requirements. You may also visit their branch if you have time to do so.

Another important factor that you need to prepare prior to any credit card application is your credit rating. You need to be certain that your background is clear and that you don’t have any history of bad credit. Otherwise, you might have little chance of being granted a credit card. If you do have problems with your credit rating, there are still banks though that accepts such applications but with some special clauses or conditions.

Credit cards are also classified into different types depending on the credit limit. In general, these are basic, silver, gold and platinum cards. Credit cards under basic and silver usually have lower credit limit compared to gold and platinum. Banks and credit card companies will recommend the type of credit card that fits your income range or your capacity to pay. From a cardholder’s point of view, it’s also advised to have cards will lesser credit limit especially if the person’s income isn’t that high. Otherwise, there will be a risk that that person may eventually run into trouble to erase credit card debt.