Bad credit and divorce. These are two topics which are usually stressful enough on their own, but when they work in tandem they can leave you pulling out your hair. With the recession, however, many people are faced with both of these obstacles. Most people who are going through a divorce will wonder at some point how their credit will factor into the process, and how it will end up looking in the end.
If you are struggling with a divorce, an attorney might be able to help you. A divorce lawyer can be a great resource for helping you figure out your rights and helping you decide how to best enforce them. If you'd like to talk to an attorney in your area, just fill out the short form below and arrange your initial consultation.
If you go through a divorce and find yourself with a declining credit score, there are measures you can take to right the ship.
Organization is one of the keys to handling your debt and credit situation. After all, how can you pay your bills if you don't even know what they all are?
By really understanding how much you owe and to whom you owe it, you can set yourself up to be in a position to pay off those bills that need to be paid first.
As part of going through a divorce, many people have to establish a new household - in some cases, this includes buying new furniture, new appliances, and more.
This may seem obvious, but if you are struggling to pay off the debt you currently have, try to incur as little additional debt as possible. If you can trim out the unnecessary daily expenditures that will only bring you deeper in the hole, you allow yourself to get back on your feet more easily.
Even if the cost of re-establishing your independence - including credit independence - leaves your finances in disrepair, your credit isn't a permanent thing. By taking healthy action today, you may be able to rebuild credit over a number of years.
Even if your finances are in ruins, you can take steps to get a fresh start. Many people have an aversion to bankruptcy, and it can be a difficult process to go through. But it is there as a tool for people to use. Many famous people have had to go through bankruptcy and a lot of them rebounded after.
There are a lot of factors that go into a decision to file for bankruptcy. It isn’t something that you should make on a whim. But many people incorrectly believe that bankruptcy will remain on your credit report forever. It doesn't.
It can vary depending on your situation, but bankruptcy will only be visible to your creditors for a set amount of years afterward. For most people, it’s around 7 years.
Seven years isn’t a short period of time, but it's not as though your bankruptcy will follow you around for the next 40 years of your life.
Whatever options you take to help your credit, be it small steps or large ones, it's important to keep moving forward.