Divorce can be devastating physically, emotionally and financially. Many consumers end up with overwhelming debt and tarnished credit scores shortly after divorce. Such financial destruction is usually caused by the person’s abrupt loss of an additional income. However, just because a person goes through a divorce does not mean that the person should suffer. Several options are available to help a recently divorced person get out of debt. Some of them are as follows:
Review the Credit Report
After going through a divorce, a consumer can alleviate a portion of the debt by challenging the material contained in his or her credit report. Credit cards that belong to the ex-spouse may be on file with the bureaus. Such information can make a debtor appear to have more debt than the person really does. Disputing and questioning these accounts can help the party to get out of debt.
Earn Extra Income
To make up for the loss of wages that were brought in by the other spouse, the remaining party can perform various tasks. Many part-time jobs are available, for which the person can apply. Additionally, a wealth of part-time work from home jobs are accessible to any person who wishes to earn extra income. The party could use the funds from the second job to pay down debt at a faster pace.
Stop Using Credit
One of the best ways to get out of debt after a divorce is to stop using credit cards and personal credit lines. A person cannot pay down debt if he or she continues to raise the bar on borrowing. An individual wishing to get out of debt must be disciplined in all aspects of safe spending, frugality and budgeting. The person should not use credit cards unless there is a dire emergency.
File for Bankruptcy
Another option a person would have after going through a divorce is filing for bankruptcy to get out of dept. Some bankruptcy classes grant the debtor forgiveness on all accounts gone awry after a divorce. Other bankruptcy classes work by setting the debtor up with a payment plan that he or she can afford. The website mullinslawoffice.com/divorce-bankruptcy-law is a great page to gain some initial information on the laws and processes of bankruptcy.
After considering all the options for getting out of debt after going through a divorce, the individual may use one or a combination of a few to better his or her financial profile.