Divorce isn't a popular topic of discussion on most blogs, but we've experienced it ourselves and know our customers have too. Divorce not only can wreck havoc on your heart and your family, but it's also one of the leading causes of bad credit cases--often to a lot of people's sudden surprise.
Credit Often Plunges During a Divorce--How Can You Slow the Damage?
- Know whose names are on official documents. Anything with a financial agreement tied to it runs the chance of having your name on it, assuming it was made during the course of your marriage. This is specifically important when it comes to credit cards and whose names are on the account. Credit card companies can still hold you liable for payments even if the expenses aren't yours. Where possible, call any lenders where you and your spouse were both listed, and ask to see what types of authorized users exists on the accounts, and make sure to involve your lawyer in these financial proceedings.
- Remember that FREE credit report check we keep jabbering about? USE IT. Monitoring activity to your credit score is an absolute must.
- Keep your newly-single expenses as short and as realistic as possible. Set a monthly budget, sell what you must, downsize where possible, consolidate your goods, revisit your current expeneses (like cell phone plans, cable, rent or mortgage payments, car payments and insurance, etc.) and where possible, reach out for help from friends and family.
- Take a deep breath. And commit to your happiness.
Sometimes a little bit of knowledge--and real talk--goes a long way when it comes to preparing yourself against financial stuggles. If divorce is effecting your well-being or financial health, know that there are lots of resources and companies that are committed to helping your rebuild or establish credit on your own. And, as always, we encourage you to consult your financial advisors, lawyers, the IRS, and other credible outlets for additional information on how to rebuild or establish your credit in the midst of divorce.