Staying Debt-free During a Divorce
Sunday, January 31st, 2010
Lisa Nichols
Stay debt-free during a divorce. If you are ending a marriage, there’s enough additional stress already without worrying about financial problems. You can stay debt-free during a divorce and build your credit history with some careful planning and awareness of divorce and credit pratfalls.
Divorce Debt Pitfalls: What To Avoid
There are a number of pitfalls that can lead to divorce debt. If credit cards are in both of your names, make sure that payments are made throughout the divorce proceedings. Talk to the credit card companies about cancelling joint accounts and reopening credit cards in your name only after the divorce is final to keep debts in check. Be aware that the credit card company may request that individual accounts are opened as new accounts, with all-new applications. If you are the credit cardholder, you are responsible for all debts during and after the divorce. If your ex-spouse is an authorized user on any card, request that the credit card company delete their name to avoid additional debt during or after the divorce.
Build Credit History After A Divorce
Many people find out after a divorce that they need to build their personal credit history. Start by ordering your credit report and score to see where you stand. Credit monitoring programs provide helpful information on how to build a better credit history. Start slowly and work to improve your credit report over time for the best results.
Divorce And Credit Issues To Keep In Mind
If the only credit cards you own are joint accounts, it may mean starting to build a credit history from scratch. Look for low interest credit cards or balance transfer credit cards to help reduce debts after divorce. Build a new credit history with a prepaid credit card that reports on personal and financial information to the credit bureaus if traditional credit cards are not an option. Work towards becoming debt-free or at least reducing debt by paying more than the minimum amount due each month and paying bills on time.
Clyde
Stay debt-free during a divorce. If you are ending a marriage, there’s enough additional stress already without worrying about financial problems. You can stay debt-free during a divorce and build your credit history with some careful planning and awareness of divorce and credit pratfalls.
Divorce Debt Pitfalls: What To Avoid
There are a number of pitfalls that can lead to divorce debt. If credit cards are in both of your names, make sure that payments are made throughout the divorce proceedings. Talk to the credit card companies about cancelling joint accounts and reopening credit cards in your name only after the divorce is final to keep debts in check. Be aware that the credit card company may request that individual accounts are opened as new accounts, with all-new applications. If you are the credit cardholder, you are responsible for all debts during and after the divorce. If your ex-spouse is an authorized user on any card, request that the credit card company delete their name to avoid additional debt during or after the divorce.
Build Credit History After A Divorce
Many people find out after a divorce that they need to build their personal credit history. Start by ordering your credit report and score to see where you stand. Credit monitoring programs provide helpful information on how to build a better credit history. Start slowly and work to improve your credit report over time for the best results.
Divorce And Credit Issues To Keep In Mind
If the only credit cards you own are joint accounts, it may mean starting to build a credit history from scratch. Look for low interest credit cards or balance transfer credit cards to help reduce debts after divorce. Build a new credit history with a prepaid credit card that reports on personal and financial information to the credit bureaus if traditional credit cards are not an option. Work towards becoming debt-free or at least reducing debt by paying more than the minimum amount due each month and paying bills on time.
Clyde
