With a secured credit card, the debtor will be required to put down some form of collateral, which is usually made in a form of a cash deposit to the credit cards companies which they are seeking to get a card from. On the flip side, the unsecured cards do not require any collateral to be put down, but due to the past history of the debtor, following the bankruptcy filing, it may be extremely difficult to get these cards, and for the institutions who do offer a card, they are going to charge much higher interest rates, and the terms and limits on the cards are going to be far stricter than that with a borrower who has not filed for bankruptcy, or who has an excellent credit rating.

So, when considering which card is best to rebuild credit, and try to get things back in order, the debtor who recently filed for bankruptcy has to take these things in to account, and has to take the time to compare credit cards, whether they are going to get a secured or unsecured card, the terms, what the restrictions are, what their limits are, whether they will be able to make the payment on the unsecured cards, and all other features of both cards, as well as the restrictions on the cards, in order to determine whether secured or unsecured is the better option for them to go with post- bankruptcy. 

There are several things to consider with both types of cards. With secured cards, many institutions are going to load the card with high fees, due to the past history of the debtor, and even if the debtor is able to put a higher limit (with a higher cash down payment), many institutions will restrict the limit they can have on the cards. With unsecured cards, many institutions are going to charge an annual fee, strictly limit or restrict the limit they will give you, charge higher interest rates due to your past credit, and place several other restrictions on the uses, and on the limit given to those who have previously filed for bankruptcy. 

So, as a debtor, there are pros and cons with each card, and taking the time to compare, and take all of these factors in to consideration is a must. Knowing which cards to apply with, which ones to avoid, what fees are going to be tacked on due to your past credit scores and bankruptcy, and all other factors and limitations that will be placed on the card given to the the debtor, prior to making the decision. There really is no right or wrong choice as to what a debtor should do. Both card options have drawbacks, and it is really a personal choice to each debtor, and it is up to them as to how much time they will take doing research and comparing the card options. 

The more time that the individual takes in finding the right card, and in deciding which one is better for them, and what payments they are able to afford, the more likely it is that they are going to make the right decision. It also depends on the debtor’s work, life situations, other obligations, and what payments they will be able to afford on the credit card payment. Taking all factors in to consideration will help the debtor make the right choice.

There are two methods of debt repayment that are most often used by consumers that are trying to get rid of their debt. These two methods of debt repayment have two different, but similar methods.

The first method of debt repayment is to repay the smallest debts first. This will include making a list of all the debts that have been accumulated from credit card debt to personal loans. The smallest debt is repaid first, followed by the next smallest and so on. This allows the consumer to see instant results in the reduction of their debt and can greatly reduce the amounts of debts which are being held.

The second method of debt repayment will not give the consumer the instant gratification that comes from repaying the smallest of debts, but will include repaying the highest costing debt first. To find the cost of the debt on a monthly basis simply multiply the balance by the interest rate. Once these numbers have been attained simply order these numbers from largest to smallest. Repay the largest first to save the most money on interest cost through the life of the debt.

Each method of debt repayment will include calculating the debts which have been accumulated. The consumer should place as much of their income as possible, to fifteen percent of the total income towards debt repayment to receive the best results.