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 avoid any major hits on your credit report, you need to do something pro-active to weather the financial storm on the horizon. Many financial experts say that woman suffer more in the area of finances than do their male counterparts. This is largely because even today more men are the primary credit qualifier for obtaining mortgages and credit in general. Whether male or female, without a solid credit history in your own name, you won't be able to qualify for refinancing the marital home.
When divorce hits and credit suffers, you are likely to end up with high-interest credit cards and auto loans. Here are a few suggestions to help avoid such quagmires:
. Consider tearing up all your cards.
. Do not pledge the credit of the other spouse.
Consider taking a financial or accounting class.
Try to agree on one appraiser rather than shopping for a "buyers" appraiser or a "seller's" appraiser.
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.
Remeber that tough economic times are generally followed by long term periods of prosperity. Don't give up hope. Hopefully, you have followed the old parental advice, to "save for a rainy day."
When couple fight, it is often about communication problems, sex or money; and for everything else, well, there is Master Card. Credit card debt is the major reason for bankruptcy filings in the United States. People often see plastic use as something different and unrelated to wealth and prosperity, often though, you can't have one without the other.
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 avoid any major hits on your credit report, you need to do something pro-active to weather the financial storm on the horizon. Many financial experts say that woman suffer more in the area of finances than do their male counterparts. This is largely because even today more men are the primary credit qualifier for obtaining mortgages and credit in general. Whether male or female, without a solid credit history in your own name, you won't be able to qualify for refinancing the marital home.
When divorce hits and credit suffers, you are likely to end up with high-interest credit cards and auto loans. Here are a few suggestions to help avoid such quagmires:
. Consider tearing up all your cards.
. Do not pledge the credit of the other spouse.
Consider taking a financial or accounting class.
Try to agree on one appraiser rather than shopping for a "buyers" appraiser or a "seller's" appraiser.
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.
Remeber that tough economic times are generally followed by long term periods of prosperity. Don't give up hope. Hopefully, you have followed the old parental advice, to "save for a rainy day."
When couple fight, it is often about communication problems, sex or money; and for everything else, well, there is Master Card. Credit card debt is the major reason for bankruptcy filings in the United States. People often see plastic use as something different and unrelated to wealth and prosperity, often though, you can't have one without the other.
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 considering 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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12:43 AM
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