In times of divorce, money can run out quickly. From paying the attorney to supplying your kids school materials, you always seem to be spending money. However, there are ways you can deal with your credit card debt during and after your divorce. For instance, establishing your credit is a good place to start.
It’s very hard to get by, especially in the midst of divorce, without credit. Once you’ve gotten credit, understand and maintain your credit score from before, after, and during your divorce. While doing this, It’s important to separate your assets to know what is in whose name, and what isn’t. Along with separating assets, try to split cards too. Decide who gets what card. It also doesn’t hurt to get help so as recommended, seek assistance from a financial planner or accountant to help with all those big financial decisions ahead.
Gregg Schoenberg of Peerform Lending says, “We’re trying to be in the best position to facilitate loans that often beat credit cards, which are very expensive.” With that being said, consider a long but not just any loan, a loan from a peer to peer lending platform. When taking out a loan, use a short term loan for big purchases. Before doing this, it may be a good idea to also consolidate any debt you may have; this gives off the sense that you have good financial management and will help out in future loan withdrawal and/or purchases. From time to time, you’ll hear of people who cut up their credit cards – don’t do that.
Instead, research FICO scores and keep a zero balance and charge every so often. Just like in any life changing event, it’s nice to have a strategy to know how you’ll get through it. Finances are up in the air during divorce and everything seems hectic. Well, just create a financial strategy; know what to purchase, compare it to what you owe in debt, weigh out the consequences or earnings of how this expense will affect you financially. This won’t solve all your problems but it will help you get through them. When thinking of your strategy, remember not to depend on child support or maintenance. Scale your expenses up to your income and work out how much disposable income you need per month in case something goes wrong.