Credit card debt and other money problems are prime factors leading to many divorces as spouses struggle financially in a poor economy. Some couples turn to bankruptcy as a solution to their money problems. But that can be a daunting step that leaves people with a low credit score after a divorce, when finding financial stability feels extremely important.
The financial situation following a divorce may be even more crushing to individuals than debt problems were during their marriage. Even without bankruptcy, exes will often discover that their former spouse put them in extreme debt and failed to pay bills on time. Or someone will have a low credit score simply because she never has opened her own line of credit. These are all reasons why it can be important to focus on one’s credit score after divorce.
Despite all obstacles, remember that credit scores that are already harmfully low can be improved before, during and after divorce. Fox Business shares some tips for the newly single about how to improve their credit rating.
To get those credit scores into an improved state, it is essential to look at and understand the entire financial picture. You may have to contact debt collectors and work with creditors to solve difficult financial stresses that cause a low credit score. By using the help of a bankruptcy attorney, ex-spouses can often work out good arrangements with their creditors and avoid the continued stress of excessive debt.
Divorce can accelerate low scores, especially if angry spouses refuse to pay bills in a timely manner. Ultimately, this can hurt both divorced parties’ credit scores because marital debt continues to be shared on credit reports. If your spouse exhibits negative behavior like this, you should not continue to share any joint accounts or financial obligations with him.
These are just a couple of tips related to credit scores and divorce. To find out more, visit Fox Business or contact a divorce attorney and/or financial professional with experience in this important matter.
Fox Business: “Square One: How to Build Credit After Divorce,” Lynette Khalfani-Cox, Jan. 25, 2012