| February 8, 2012

Avoiding debt during a divorce

Getting a divorce can be emotionally and mentally trying on spouses, and the last thing divorcing couples may want to think about is their finances during this period. But divorce proceedings can also result in debt and financial hardship for respective parties, making it important to pay close attention to the small details.

Couples who hold mortgages and auto loans together will have to work with their attorneys or mediators to determine who gets what. Before accepting assets or a settlement, it’s important that individuals make sure they can truly afford them. Mortgage payments and auto loans can take a bite out of an individual’s single income, so weighing these new costs against other obligations is imperative. Experts advise homeowners against taking on a mortgage that cuts into more than 28 percent of their take-home pay.

But the tricky part comes when settling joint credit card accounts. Both partners will be equally responsible for paying off the balance in full before closing the account, CBS MoneyWatch reports. For this reason, it’s important to stay on top of payments and make sure the other partner is doing his or her part to avoid credit score damage and fees. Before severing accounts, most experts recommend that each person obtain a credit card in their name to begin rebuilding credit. A good credit history will be vital to newly-divorced individuals when it comes to securing housing, lines of credit and insurance.

In addition to paying off existing credit card debt, it’s important to weigh in other costs that may arise from a divorce. Individuals will have to cover the expense of finding a new home or apartment, purchasing a car, buying furniture and covering basic living needs. Going from a double income to a single income can be challenging, and some individuals may have to take on some credit in order to meet their needs. Taking on the bare minimum until they get accustomed to their new income level can help individuals avoid running up overwhelming balances.

During this pivotal life event, working with a financial professional or credit counselor is strongly encouraged. These services can help newly-divorced individuals establish debt repayment plans to cover their credit card bills. In addition, counseling services can also provide budgeting, money management and credit health resources for those acclimating to new financial circumstances.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
Click here to learn more.

Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

You can save!

With this amount of debt, you'd pay around $xx.xx on a DMP.

FREE Debt Consultation
VE Interactive