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Credit Repair After Divorce
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By: XSTILLA.COM
Money usually becomes a factor either in or after a divorce. Financial strain can put significant pressure on already weakened areas in a marriage, and can definitely produce hostility and anxiety in the lives of divorced or separated individuals. Emotions do not have price tags, and inanimate currency cannot, in itself, cause you to feel one way or another. In putting the pieces of your life back together as a newly single person, it will be beneficial for your future emotional health to separate your emotions from your checkbook.
There are significant financial ramifications of divorce. After the divorce litigation has been paid for, there is still the very present reality of losing the income of your partner. And in the worst case scenario, there can sometimes be outstanding debt left by a dishonest or an extravagant ex-spouse. As you face what seems to be a mountain of debt, know that even mountains can be climbed one step at a time.
First, get a copy of your credit report from all three of the major credit bureaus. This will allow you to see the accounts that truly need to be dealt with. It will also alert you to any debt accrued by your spouse that could possibly still be in both of your names. You are responsible for this debt, and can start taking steps toward that end once informed. You can also dispute any inaccurate information at that time.
Deal with delinquency first. Your payment history is 35% of your credit score, so it takes precedence over all other accounting matters. Do not close any delinquent accounts. If a credit card has a balance, work to get it current. Closing credit cards with a balance will only negatively affect your credit score, not improve it. You can never “un-close” them once that mark has been made on your report.
As unpleasant is this might be, call your creditors. Explain your situation to them, and many creditors are willing to work with you until you are back on your feet. They are in the business of making money, and making a little is still more than making none.
During this time of credit repair, utilize all the community resources available to you. Most electric and gas companies offer even-pay programs to allow for easier budgeting, by letting you pay the same amount each month throughout the year. Many loan companies will allow you to pay only interest until you are able to pay both principal and interest. Contact a credit counseling service if you feel overwhelmed or scared. Fear is a paralyzer, and you need always to be moving toward health and freedom.
It might take longer than you wish to repair the financial damage done by the divorce. But divorce is a proving ground for the human spirit. Right now you are standing. You may be battle-weary, but you’re standing. Freedom isn’t cheap, but it will always be worth it.
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