Can I use a Debt Consolidation Loan for My Ex-Spouse’s Debts?
Getting through a divorce can be a stressful experience, but it can be even worse if you find out after the settlement that your ex-spouse’s creditors are coming after you for debts that he or she took out under your name during the marriage. While these debts might have been addressed in the divorce settlement, many former spouse’s are dismayed to learn that their creditors are not interested in the terms of these court orders. That leaves many of them in the position where they have to pay a debt that they weren’t expecting to be stuck with.
In many cases, these debts are a huge financial burden on the spouse that was not ordered to pay them. In these cases, it’s usually a good idea to pay the debt off over time rather than deal with it all at once. A debt consolidation loan is a good way to make sure that the debt is paid off to the creditors (which will stop the harassing phone calls and damage to your credit report) while being able to control the amount that you pay towards the debt each month.
By working with a debt counselor, it will be possible to develop a budget that will include your new post-divorce expenses and income while also making sure that you can afford to pay everything. The debt consolidation loan can include not only the debts that your ex-spouse left to you, but also any other debts that you have, including credit card bills, student loans, and medical bills.
Paying everything off at once will prevent creditors from calling you, while also making sure that they can no longer effect your credit. Instead of dealing with multiple banks and lenders and the bills from a variety of different loans, why not just pay everything off at once and then make small, regular monthly payments on the loan amount. The amount you pay each month can be less than the minimum amount you’re paying now, and more of the money you pay will go towards actually lowering the balance of your loan.
If you are stuck paying the debts of your ex-spouse, getting them all paid off as quickly as possible is a necessary step you have to take in order to move on with your life.