Nobody wants to go through the pain and stress of divorce. Sometimes, life just hands us only an option. Divorce marks a new phase in your life, a recovery period. To save yourself another unending paid you may need to assess your credit line to determine the status. Rebuilding your credit post-divorce requires you to be able to hold down a job and have a steady inflow of income. That’s when you can now think of rebuilding whatever is left of your credit. We are not talking about Alimony and Child Support here (even though they count), but an income that meets your monthly expenses. With an income in place, then let’s get to work!
Look into Your Credit Report and Credit Score.
A knowledge of where your credit stands and what has dredged a whole into it will help know where to start. Request your credit report from all of the three credit reporting bureaus and peruse it carefully and thoroughly. You may need the professional assistance of credit repair experts to ascertain the status of your credit. With your credit score in your view, you will know what to do or not to do.
Deal With Joint Debts that Ties You and Your Ex-Spouse.
You just have to overlook your differences and take care of those debts you accrued with your ex-partner. Regardless of whether the judge rules that the debts were as a result of his/her action, it will still affect your credit history. Restructure your debts during the divorce proceedings, the debts you are responsible for should be in your name. While the others you are not responsible for bears the name of your ex-spouse.
Never Apply For New Credit Without a Change of Last Name.
This applies to the wife, and it’s crucial. You can revert back to your maiden name before opening up new credit line. Put a call or email through to your existing creditors informing them of your change of name. Let me break your heart a bit, a change of name will not erase your credit history. What it will do is to prevent you from having a future ravaged by past history of credit.
Attend to Bills You Can’t Pay
Depending on which side of the fence you are, paying your bills during the early days of divorce could be pretty difficult. This is where financial professionals come in to assess your budget. You may decide to visit a Credit Counselling Agency to help determine the severity of your finances. It may mean you have to file for bankruptcy.
Apply For Credit Independently.
You need to apply for a new credit line and it should in your own name. Building a good credit score is to handle credit responsibly through your actions. Ensure you make payment promptly and on time. 30% is the ideal limit to keep your credit card balance. Building credit post-divorce is to apply for credit and never delay payments.
Being out of a job is not totally bad and uncommon. What is bad and common is the low credit that emanates from a long period of unsteady income. This leads to spending decisions that push your credit into a difficult angle and need for credit building. Leading to a low credit score that scares creditors and even prospective employers. Don’t be worried, you can still rebuild towards recovery as soon you get a new job. Fresh Start Credit believes you can go from that low credit score to having credit scores amongst the top 18% by going through these simple steps;
1. How Much Is Your Net Income?
We don’t need to know the answer, keep it to yourself. You’ll need it to determine the lifestyle it can afford you. Ascertain your net income through your first paycheck when taxes and other deductibles have been sorted out. With a true picture of your income level, you’ll be able to plan on what should go into the rebuilding of your credit ratings. Don’t make the mistake of spending above your limits, it must always be below your income.
2. Work Out A Budget
Having your income and known expenses in mind, create a budget that’ll accommodate your plan of rebuilding your credit. You can start out by paying off your debt using the minimum monthly payment plan to ease the burden on your income. Before you start to pay off your accumulated debt, do an assessment. Know all of your expenses and which you can reduce or do away with. You’ll be left with some amount that must be committed towards clearing off debts.
3. List Out All Your Debts
Scary, right? We know it is. You just have to do it to ascertain what you are going to settle in the coming months. Knowing the total value will help you work out a repayment plan to aligns with your income. In developing a list, separate the current ones from those overdue. For the ones already overdue, note the value of delinquency with the period overdue in months.
4. Get Off Your Credit Cards
That’s what got you’re here and cannot help in credit building. You can only make it worse if you are still doing the same thing while expecting a different result. You need to quit living on your credit cards. Draft out an expenses plan using your income since you already have a sort of take-home pay. It is definitely difficult to be independent of your credit cards after relying on it so much. However, there are no other means to rebuilding than to quit being too attached to your credit cards.
5. Know Which to Pay First
There are different opinions when it comes to payment of debt. However, you need to conduct a close appraisal of what needs to be paid. You may have to contact your lender or let a qualified Fresh Start Credit Repairer handle the rebuilding. It will cost you less while you get faster results.[contact-form][contact-field label=”Name” type=”name” required=”true” /][contact-field label=”Email” type=”email” required=”true” /][contact-field label=”Website” type=”url” /][contact-field label=”Message” type=”textarea” /][/contact-form]