Take steps to protect your credit during divorce
When your marriage is on the slide, all too often your credit score takes a hit as well. While a divorce decree ends one type of relationship, your creditors don't want you to leave them, unless it is on their terms. You can take steps to protect your credit during divorce.
To do something pro-active, financial experts stress education. Yu need to learn the ins and outs of credit lending and reporting. The family home is generally the largest asset that most people achieve in their life times. More often than not, men still feel like they get the short end of the financial stick in a divorce. It does not take long to screw up a good credit rating. It may take a very long time to rebuild a damaged credit score.
There are a few basic steps you can take to help lessen the financial pain.
Pay up joint debts and cancel joint credit cards after you get a card in your name.
. Separate joint debt into manageable chunks.
Consider taking a financial or accounting class.
When it comes to the family home, consider selling it if necessary. If one of you can buy the other out of the marital home, it can avoid a lot of delay and uncertainty, especially in a declining housing market. If the buying spouse can qualify for a new mortgage in his or her own name, there can be creative options in further dividing marital assets and debts.
Consider paying off any vehicle loans as part of any house refinancing if possible. When starting anew, the fewer debts the better. Minimizing your debt is probably a good idea regardless of one's marital status. If you are falling behind in bills, due to job loss or illness, do not avoid your creditors and try to work out arrangements. Unpaid debt, joint or individual, will be reported to the three national reporting agencies resulting in lower credit scores.
When the tough times hit, hope for the best, but plan for the worst. Take precautions to protect your credit and your good name. Regardless of a divorce, if there is joint debt - a mortgage, car loan or credit card --- you are both on the hook to pay it off.
Bankruptcy filings and increases in divorce rates have some definate relativity in the consumer markets and legal profession. When people divorce, they are often looking for a clean slate, emotionally and financially. These days, it is practically socially acceptable to file bankruptcy, the same appears to be true about divorce.
Despite the changes in bankruptcy laws in the last few years, it is still pretty easy to walk away from many individual and marital obligations.
To do something pro-active, financial experts stress education. Yu need to learn the ins and outs of credit lending and reporting. The family home is generally the largest asset that most people achieve in their life times. More often than not, men still feel like they get the short end of the financial stick in a divorce. It does not take long to screw up a good credit rating. It may take a very long time to rebuild a damaged credit score.
There are a few basic steps you can take to help lessen the financial pain.
Pay up joint debts and cancel joint credit cards after you get a card in your name.
. Separate joint debt into manageable chunks.
Consider taking a financial or accounting class.
When it comes to the family home, consider selling it if necessary. If one of you can buy the other out of the marital home, it can avoid a lot of delay and uncertainty, especially in a declining housing market. If the buying spouse can qualify for a new mortgage in his or her own name, there can be creative options in further dividing marital assets and debts.
Consider paying off any vehicle loans as part of any house refinancing if possible. When starting anew, the fewer debts the better. Minimizing your debt is probably a good idea regardless of one's marital status. If you are falling behind in bills, due to job loss or illness, do not avoid your creditors and try to work out arrangements. Unpaid debt, joint or individual, will be reported to the three national reporting agencies resulting in lower credit scores.
When the tough times hit, hope for the best, but plan for the worst. Take precautions to protect your credit and your good name. Regardless of a divorce, if there is joint debt - a mortgage, car loan or credit card --- you are both on the hook to pay it off.
Bankruptcy filings and increases in divorce rates have some definate relativity in the consumer markets and legal profession. When people divorce, they are often looking for a clean slate, emotionally and financially. These days, it is practically socially acceptable to file bankruptcy, the same appears to be true about divorce.
Despite the changes in bankruptcy laws in the last few years, it is still pretty easy to walk away from many individual and marital obligations.
About the Author:
If you are thinking about a separation and divorce, have concerns about your finances, credit and legal rights get Free Divorce and Financial Information and Resources. It is important to avoid credit problems when you are in transition. At the Divorce Without Dishonor website you can find Free Divorce and Financial Information and Resources
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10:59 AM
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