Divorce and Credit Card Debt
Why Divorce and Credit Card Debt Can Be Avoided
Unfortunately divorce and credit card debt are linked together more than ever these days. In order for you to protect your good credit, divorce is not an excuse to allow for your joint credit card debt that you have accumulated when you were married to just go in the negative. Just like anything else you are personally responsible for joint accounts or any credit cards that you have such as car loans and home mortgages to name a few. Even if a divorce judge orders your ex spouse to pay a certain credit card bill, you are still legally responsible for making sure that this bill is being paid. If not your conscience of your credit then know it can be ruined.
The bank, credit card issuer, mortgage company or other credit lending businesses that have given you the chance to obtain credit with also have the legal right to report any negative credit information to a credit bureau if your ex pays late on a joint account that you may have together. If your ex-spouse decides that he or she does not want to pay the bill at all you will probably have to pay it because legal action can be taken in order to get the debt paid off.
Why Divorce and Credit Card Marital Debt Should Be Taken Seriously
Until you can separate your accounts you can not afford to miss a payment on your bills to avoid reporting to the credit bureaus. Send in at least the minimum payments due on all joint bills until they can be separated. One missed payment can have a negative effect on your credit report at times up to 7 years. Do not try to run up the debts, play by the rules and make all payments with at least the minimum due. Your divorce and credit card marital debt is to be taken very serious because the negative impacts that your credit will reflect is not
If you’ve recently been experienced going through a divorce or are contemplating possibly getting a divorce you may want to look closely at any financial issues involving credit or lines of credit that you two currently have together and resolve it or make a game plan on how these finances will be paid off. Understanding the different kinds of credit accounts opened during a marriage may help eliminate the potential benefits and pitfalls that can potentially involve you both.
If you’re considering divorce or separation, pay special attention to the status of all the credit accounts and each loan that that you may have. If you maintain joint accounts during this time, it is very important to make regular payments just like normal so your credit will not suffer from the divorce. As long as there’s an outstanding balance on a joint account, you and your spouse are still responsible for this payment. Even if you want a mutual split making matters worse by not paying your payments will tie you to your ex spouse longer and if you truly can not resolve your differences then the very least pay off your debts so you can split mutually without having this stress being held over your heads.
Divorce and Credit Card Debt With A Spouse
If you divorce and credit card debt with a spouse is a stress , you may want to close joint accounts or loan accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts.
The easiest way to find out what kind of debts you and your spouse owe is to get a copy of your credit report. Credit reports are a mirror image of what types of financial decisions that you and your ex-spouse has accumulated together and is the best method of being able to resolve any issues that you may encounter. There are 3 major credit bureaus that will be able to point you in the right direction. Everybody talks about them, but only three companies really do anything to produce them:
Equifax. Equifax Credit Information Services, Wildwood Plaza, Suite 500, Marietta, GA 30067. 800-685-1111.
Experian (formerly TRW). Consumer Assistance Center, P.O. Box 749029, Dallas, TX 75374. 800-392-1122.
Trans Union. 760 Sproul Road, Springfield, PA 19064. 800 916-8800.
Knowing how divorce and credit card debt really affect you can be very important if you know how to plan for it.
