Getting back on your feet after Divorce with Debt Consolidation
After the emotional upheaval of a divorce, it’s perfectly understandable if you have let things such as debt repayment go unattended for a while. It is important, however, to address these bills before they become a problem. All too often, people who have gone through a divorce have to declare bankruptcy in order to clear their debt and get a fresh start on life. That can lead to years of financial problems, however, as the filer struggles to get a new credit card, car loan, and even find a new job with a trashed credit score.
Instead of dealing with these problems, consider getting debt consolidation loan. These loans can be used to combine all of your debts into a single loan. That means you can finally get rid of the recurring bills from your lawyer, the joint credit card that your ex-spouse ran up before you could get his or her name off of it, and all of the debt you’ve accumulated from setting up a new household. A debt consolidation loan will pay off all of these bills and replace them with a single loan.
That means you’ll no longer have to deal with a monthly reminder of the damage your ex-spouse caused to your finances. Instead of worrying about how to pay off those debts, a debt consolidation loan will give you a lower interest rate and a lower monthly payment. You’ll get a fixed payment that you know will fit into your budget.
<p data-sp-element=”content”>Most importantly, your creditors will be paid off, allowing you to close the accounts. If you and your ex-spouse still share a credit card that you have to keep open in order to pay it off, this is the perfect way to cut them out of your financial life for good. If you have past due debt, this will stop debt collectors from calling you, trying to get money for debts that you never racked up in the first place.
Depending on your situation, you can pick a small payment that will free up cash for other expenses, or a larger payment that will allow you to get out of debt quickly. Either way, you’ll be able to put your past mistakes behind you and start planning for your future.