Take steps to protect your credit during divorce
When your relationship is deteriorating, the credit card companies still love you. Divorce is a time of change and great emotional and financial upheaval. Separation and divorce often deal a real blow to the family budget.Taking precautions is important.
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.
There are a few basic steps you can take to help lessen the financial pain.
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.
. Do a creit check on yourself and you spouse, if he or she agrees.
When it comes to the family home, consider selling it if necessary. If one of you can buy the other out of the marital home, it can avoid a lot of delay and uncertainty, especially in a declining housing market. If the buying spouse can qualify for a new mortgage in his or her own name, there can be creative options in further dividing marital assets and debts.
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.
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.
Despite the changes in bankruptcy laws in the last few years, it is still pretty easy to walk away from many individual and marital obligations.
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.
There are a few basic steps you can take to help lessen the financial pain.
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.
. Do a creit check on yourself and you spouse, if he or she agrees.
When it comes to the family home, consider selling it if necessary. If one of you can buy the other out of the marital home, it can avoid a lot of delay and uncertainty, especially in a declining housing market. If the buying spouse can qualify for a new mortgage in his or her own name, there can be creative options in further dividing marital assets and debts.
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.
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.
Despite the changes in bankruptcy laws in the last few years, it is still pretty easy to walk away from many individual and marital obligations.
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
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2:06 PM
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