After a divorce, one of the first things you should try and do is close all your joint credit accounts.
But unfortunately, some credit card companies require the entire balance to be paid off before closing the account. So if you and your ex-spouse don’t have the means to do that, then you might not be able to close the account.
Keep in mind that even if you are able to close the account, you’ll still be responsible for the balance and will need to figure out a way to divide that debt with your ex-spouse.
If you’re unable to close the account, ask your creditor to at least prohibit new purchases on your account. After all, the last thing you want is to be responsible for paying for your ex-spouse’s shopping spree or ski vacation!
If you have other credit cards open under your name only, you could also look into transferring the balance to one of those cards.
Once you’ve managed to either transfer the balance to another card or pay off the balance in full, call up your credit card company right way to close the account.
Are You Throwing Money Down the Drain?
If you’re trying to stick to a budget, then it can be tempting to make only the minimum payments on your credit cards each month. But here’s the problem with that: You could potentially be throwing thousands of dollars down the drain in interest.
If you have $10,000 in credit card debt, an APR of 14.9% and make only the minimum payments, you’ll end up paying $9,629 in interest alone.
Yes, that’s right. In the end, you would end up paying about double the amount that you charged, thanks to interest.
Now that’s a whole lot of money wasted.
Lower Your Interest Rates…And Pay Off Your Debt Faster
If you have a recurring monthly income but find that your sky-high interest rates are preventing you from making any sort of dent in your credit card debt, then you might be a good candidate for our Debt Management Program.
On average, our Debt Management Program helps our clients to reduce their interest rates from 24.9% to 1.9% and reduce their monthly payments by more than $300.
Believe it or not, but we’ve even helped people with over $93,000 in credit card debt become 100% debt-free.
Want to find out more about how our Debt Management Program works?
Fill out the form on the right to sign up for a free, 100% confidential Debt & Divorce Counseling Session and one of our Certified Credit Counselors can tell you how it works. They’ll come up with a personalized and affordable Debt Management Plan tailored to your budget and income.