How Debt Consolidation can help with the Emotional Fallout of a Divorce
There are a lot of consequences of a divorce, but we tend to focus on the financial consequences around here. Of course, we realize that there are a lot of other issues that surround divorce, but as a website dedicated to helping people with their money problems, we tend to focus on issues such as getting out of debt and getting your investments back in order.
Lately, however, we’ve been hearing from a lot of people that their debt consolidation loan was able to help them with the emotional separation from their ex-spouse. While this may seem a little strange, it made a lot of sense when someone explained it to us.
After a divorce, it’s very likely that you still have a lot of shared debts with your ex-spouse. Even if the divorce decree states that these debts are to split, it can be next to impossible to get a credit card company or bank to agree to those terms. That means that while one person is legally responsible for the loan, both names are on the financial agreement. One spouse deciding not to pay the loan can ruin both people’s credit.
Obviously, no one likes the position that this puts them in. The credit card companies are asking you to trust that your ex-spouse will not ruin your credit, because doing so would ruin theirs. If your ex-spouse already has bad credit, however, there’s not a lot of reason for them to continue making payments on their portion of the loans.
A debt consolidation loan can help. Rather than fight the banks and credit card companies, have each former partner agree to take out a debt consolidation loan for their part of the debt. This can be done as part of the divorce agreement, and these loans immediately pay off any joint debts that you have with your ex-spouse. Your debt becomes yours alone, and you’re no longer tied to your ex-spouse.
<p data-sp-element=”content”>In many cases, this means that you‘ll be able to make a clean break away from your ex. You will not have to discuss finances, and you will not have to take him or her back to court in an attempt to force them to pay their debts. You’ll be able to break away once and for all.