Do you want the good news or the bad news first?
Let’s start with the good news: Getting divorced doesn’t have any direct impact on your credit rating.
But here’s the bad news: Indirectly, it often does.
For starters, divorce is expensive. To make matters worse, you’ve not only lost your spouse…you’ve also lost a source of income. Now you have to find a way to pay the rent, electricity, food…all on your own.
So given all of that, you might have found yourself relying on your credit card more and more. Before you know it, you’re behind on payments and drowning in debt.
And that’s when your credit rating starts to take a hit. Just one late payment (at least 30 days past due) can cause your credit rating to drop by as much as 110 points.
Prevent Your Credit Rating From Dropping
So what you can do to prevent that from happening?
First, if you still share a credit account with your ex-spouse, make sure that both of you are keeping up with the payments. Because even if you’re paying your share of the payments on time, if your ex-spouse is behind on payments, then that will affect your credit rating as well.
If you haven’t already, you’ll also need to set a budget for yourself. In order to do that, write down all of your monthly expenses and then subtract them from your income (any money coming in each month, such as your salary, alimony and child support). Then determine how much money you have left over each month to put towards your savings and debt payments.
Need a Little Help?
If you need help setting a budget for yourself—or find that you simply don’t have enough money left over to pay off your credit card debt each month—then get in touch. If you’re eligible, we can get you on a Debt Management Plan that will reduce your interest rates, lower your monthly payments, and pay off your debt faster.
Don’t believe us?
On average, we help our clients reduce their interest rates from 24.9% to 1.9% and lower their monthly payments by more than $300. We’ve even helped people with over $93,000 in credit card debt become completely debt-free.
Want to find out more about our Debt Management Plan? Fill out the form on the right and one of our Certified Credit Counselors will get in touch shortly for your free, 100% confidential Debt & Divorce Counseling Session.
In the counseling session, they’ll help you set a budget and get on an affordable, personalized payment plan that’s tailored to you.