Protecting your credit during divorce
Credit scores are important, more than ever. When you separate or divorce, special care needs to be taken to protect your scores. Duriing these times of chane , it might be wise to shop around.
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.
There are a few basic steps you can take to help lessen the financial pain.
. Try the cash and carry method.
If joint debts can't be paid off, freeze those accounts so that neither you or your ex can run up more debt.
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.
Once the damage is done to your credit rating, it takes a long time and a lot of work to restore it. You may be well advised to use the services of a credit restoration service if needed. The credit repair gurus are salavating these days.
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.
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.
There are a few basic steps you can take to help lessen the financial pain.
. Try the cash and carry method.
If joint debts can't be paid off, freeze those accounts so that neither you or your ex can run up more debt.
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.
Once the damage is done to your credit rating, it takes a long time and a lot of work to restore it. You may be well advised to use the services of a credit restoration service if needed. The credit repair gurus are salavating these days.
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.
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
posted by Credit Counseling at
12:43 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home