07 Apr Life after a DS Program
Completing a debt settlement program is a major accomplishment—one that represents months (or years) of hard work, discipline, and resilience. At Level Coaching, we celebrate your success and want to ensure that the momentum you’ve built doesn’t end here. So what’s next? What should you do (and avoid) now that you’re officially debt-free?
Here’s your roadmap to a strong financial future after debt settlement, including answers to one of the most frequently asked questions: Should I apply for new credit now?
Step 1: Reflect on the Journey
Take a moment to acknowledge what you’ve accomplished. Debt settlement can be emotionally and financially draining. Completing the program means you’ve taken control and made your financial wellness a priority.
Before diving into the next steps, ask yourself:
- What were the triggers that led to my debt?
- What financial habits have I changed?
- What systems do I have in place to avoid repeating the past?
Revisit your answers from your coaching sessions when you first started the Level Coaching program to compare how your mindset might have changed over the course of the program.
Step 2: Build a Safety Net
The #1 reason people fall back into debt is a lack of emergency savings. Your next financial priority should be building a safety net that protects you from unexpected expenses.
Start small:
- Open a dedicated emergency savings account
- Set a goal of $500–$1,000 initially
- Automate transfers (even $25 a week adds up)
Eventually, aim for 3–6 months of living expenses. That buffer gives you peace of mind and flexibility when life throws you a curveball.
Step 3: Create (or Revisit) Your Budget
Debt settlement likely taught you how to track and limit your spending. Now, budgeting becomes your offense, not just your defense.
Use budgeting tools like:
- Access to budgeting tools within the Level Coaching portal for all members.
Categories to prioritize:
- Rent/mortgage
- Utilities & groceries
- Transportation
- Insurance
- Emergency fund contributions
- Long-term goals (vacation, retirement, homeownership)
Step 4: Consider Credit—But Carefully
“Should I apply for a new credit card now?” This is one of the most common questions we hear, and the answer depends on your situation.
When to Wait:
- If you’re still living paycheck to paycheck
- If you haven’t saved at least $1,000
- If spending is still emotionally charged
When to Consider It:
- You’re ready to rebuild credit for long-term goals
- You have a stable income and budget
- You understand how to use credit responsibly
Recommended First Steps:
- Apply for a secured credit card (where you deposit cash upfront)
- Consider a credit-builder loan through your bank or credit union
- Use new credit only for small recurring bills (e.g., Netflix, gas), and pay it off in full every month
Avoid high-interest cards, buy-now-pay-later services, or store credit cards. These are often traps that pull people back into debt.
Step 5: Monitor Your Credit
After completing debt settlement, it’s crucial to keep a close eye on your credit. You can:
- With your Level Coaching membership, credit monitoring is included!
Look for:
- Accuracy in account status (settled vs. delinquent)
- New credit inquiries
- Signs of identity theft or errors
Step 6: Rebuild Credit with Intention
Rebuilding credit is a marathon, not a sprint. Focus on the 3 key pillars of credit health:
- On-time payments (35%) – Pay every bill on time, no exceptions
- Credit utilization (30%) – Keep balances under 30% of your credit limit
- Credit age/history (15%) – Don’t rush to open multiple accounts
A steady, responsible approach will rebuild your score—and your financial reputation.
Step 7: Define New Financial Goals
With debt behind you, what do you want next?
- Homeownership?
- Starting a business?
- Saving for a wedding, kids’ education, or retirement?
Each of these goals requires a plan, and now that you’re debt-free, you can start allocating money toward what truly matters to you.
Break your goals down into actionable steps:
- Set a timeline
- Determine a monthly savings amount
- Use goal-based savings accounts (many online banks offer this feature)
Step 8: Protect Your Progress
Here’s what to avoid after completing debt settlement:
- Lifestyle inflation: Don’t upgrade your lifestyle just because you’re out of debt
- Co-signing loans: If they default, you’re liable
- Ignoring your credit: Stay informed and proactive
- Taking on too much at once: You don’t need multiple credit cards to “rebuild”
Also, beware of scams—you may be targeted by companies offering too-good-to-be-true credit offers or financial products.
Step 9: Stay Connected to Support
Staying connected to the Level Coaching team. Ongoing support can help you stay accountable and keep learning.
You don’t have to do this alone. Financial independence is a lifelong journey—and now you’re walking the path with clarity and strength.
Final Thoughts: You Are Your Best Investment
Finishing debt settlement is the closing of one chapter—and the beginning of a new, empowered financial future. By budgeting smartly, saving consistently, and building credit with intention, you’ll not only avoid the mistakes of the past—you’ll build wealth, peace of mind, and true financial confidence.
This isn’t just life after debt settlement—it’s life on your terms.
Written by Nichole Miller,
April 2025