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 do something pro-active, financial experts stress education. Yu need to learn the ins and outs of credit lending and reporting. The family home is generally the largest asset that most people achieve in their life times. More often than not, men still feel like they get the short end of the financial stick in a divorce. It does not take long to screw up a good credit rating. It may take a very long time to rebuild a damaged credit score.
High interests loans can really increase not only the amount of your debt, but it will lenghten the time that you take attempting to dig out of the hole.
Pay up joint debts and cancel joint credit cards after you get a card in your name.
. Do not pledge the credit of the other spouse.
If you're merely a credit card user on your spouse's card, remove your name.
Try to agree on one appraiser rather than shopping for a "buyers" appraiser or a "seller's" appraiser.
For some reason, it often sees like car loan agents have the least sympathy when it comes to working out delinquent payments. Car companies know that you need wheels and they therefore can lean on you when necessary. Stay on top of your car loan payments.
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 divorce cripples the family budget, not only does the stress level rise, but so too, does the likelihood of filing for bankruptcy. Despite new laws enacted in 2005 that tightened the requirements for bankruptcy, many people still see it as an easy way out of crushing financial debt. Unfortunately, some spouses also believe bankruptcy will allow them to escape their spousal or child support obligations during or after the divorce; wrong.
If your spouse or ex files for bankruptcy, you should seek legal counsel to protect you rights as a creditor. - 16931
To do something pro-active, financial experts stress education. Yu need to learn the ins and outs of credit lending and reporting. The family home is generally the largest asset that most people achieve in their life times. More often than not, men still feel like they get the short end of the financial stick in a divorce. It does not take long to screw up a good credit rating. It may take a very long time to rebuild a damaged credit score.
High interests loans can really increase not only the amount of your debt, but it will lenghten the time that you take attempting to dig out of the hole.
Pay up joint debts and cancel joint credit cards after you get a card in your name.
. Do not pledge the credit of the other spouse.
If you're merely a credit card user on your spouse's card, remove your name.
Try to agree on one appraiser rather than shopping for a "buyers" appraiser or a "seller's" appraiser.
For some reason, it often sees like car loan agents have the least sympathy when it comes to working out delinquent payments. Car companies know that you need wheels and they therefore can lean on you when necessary. Stay on top of your car loan payments.
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 divorce cripples the family budget, not only does the stress level rise, but so too, does the likelihood of filing for bankruptcy. Despite new laws enacted in 2005 that tightened the requirements for bankruptcy, many people still see it as an easy way out of crushing financial debt. Unfortunately, some spouses also believe bankruptcy will allow them to escape their spousal or child support obligations during or after the divorce; wrong.
If your spouse or ex files for bankruptcy, you should seek legal counsel to protect you rights as a creditor. - 16931
About the Author:
If you are thinking about 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
posted by Edgar at
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