Protecting 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:
Pay up joint debts and cancel joint credit cards after you get a card in your name.
If joint debts can't be paid off, freeze those accounts so that neither you or your ex can run up more debt.
If you're merely a credit card user on your spouse's card, remove your name.
The family home is all to often used as a huge ATM machine and couples often max it out during the marriage, leaving little equity to work with during separation and divorce. Necessity is the mother of invention, so be creative in your spending.
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.
Quality legal advice and guidence is a must if bankruptcy is a consideration.
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:
Pay up joint debts and cancel joint credit cards after you get a card in your name.
If joint debts can't be paid off, freeze those accounts so that neither you or your ex can run up more debt.
If you're merely a credit card user on your spouse's card, remove your name.
The family home is all to often used as a huge ATM machine and couples often max it out during the marriage, leaving little equity to work with during separation and divorce. Necessity is the mother of invention, so be creative in your spending.
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.
Quality legal advice and guidence is a must if bankruptcy is a consideration.
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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