How to use Debt Consolidation to get rid of your Divorce Debt
Anyone who has gone through a divorce can tell you that the best way to get over the emotional upheaval of this time is to move on with your life. This doesn’t just mean separating yourself emotionally from your ex; you also have to get rid of all the financial issues that you divorce caused.
Today, it’s very common to file for bankruptcy almost immediately after finalizing your divorce. Unfortunately, that’s a decision that can haunt you for years. Immediately after your divorce is finalized, you’re going to need good credit to refinance credit cards into your name, establish a new household, get a mortgage, and buy a car. If you file for bankruptcy, doing these things is going to be next to impossible. If you can’t afford to pay your debts after a divorce, however, it may seem as if you have no other option.
Fortunately, there is a solution to this problem. Debt consolidation loans were practically designed to deal with these issues. These loans don’t require you to have good credit, but they do offer you a lower interest rate than what you’re currently paying. Most importantly, they’re able to combine this lower interest rate with an extended payment term to offer you a loan with payments that can be less than half of what you’re currently paying.
A debt consolidation loan is used to pay off all of your debts, including your lawyer bills, credit cards, student loans, and home equity lines of credit. These debts are immediately paid off, letting you choose whether or not you want to close the accounts. If your ex-spouse’s name is still on the accounts, you can rest easy knowing that his or her failure to pay bills can no longer effect your credit score. The bills are then consolidated into a single loan under your name only.
<p data-sp-element=”content”>Your payments on a debt consolidation loan will be low enough to fit into your new, post-divorce budget. As you work to get back on your feet, you can choose to pay more every month to retire the debt quickly, or hold on to your money and build up your savings. Either way, your debts will be under your name only, and you can work on getting it paid off at your own pace.