Credit card debt can be a tough issue during divorce. While your Richmond Hill divorce lawyer can provide you with legal advice based on your unique situation, it’s up to you to implement his or her suggestions. It’s incredibly important to provide your lawyer with a clear picture of your financial situation and ask as many questions as you can—that way, you’re not left coping with credit card debt on your own once your divorce is final.
What Your Richmond Hill Divorce Lawyer Might Recommend
Your Richmond Hill divorce lawyer might advise you to pay off as much debt as you can while you’re still married. Decreasing the amount of money you owe may make your divorce simpler.
Your Richmond Hill divorce lawyer can help you to come up with a plan to divide marital debt during the process of your divorce, just like you’ll divide your assets. Both you and your soon-to-be ex might be responsible for paying down your credit card debts.
Increasing Credit Card Debt during Divorce
Many people need to use credit cards to provide emergency funds during divorce. Your Richmond Hill divorce lawyer may recommend that you use credit cards only when absolutely necessary, particularly if you’re going to deal with a sharp decrease in household income as a result of your divorce.
Coping with Credit Card Debt after Divorce
If, during your divorce, you’re concerned that you might get saddled with your spouse’s credit card debt, talk to your Richmond Hill divorce lawyer. He or she might be able to help ease your fears and ensure that throughout your negotiations it is clear that the debt belongs to your spouse and not to you.
It’s never too soon to start rebuilding your credit rating by paying down debts that you owe. As soon as you’re financially able, make payments according to the credit card companies’ requirements. Financial expert David Bach also suggests:
- Calling your creditors and asking about their debt management plans.Some credit card companies offer to cut your interest rates if you’ll agree to set up automatic payments that come directly from your bank account.The downside: Credit card companies often close or freeze your account once you start a debt management plan with them.
- Working with a credit counselling service. However, be careful to work only with a responsible, non-profit agency like those listed by the Ontario Ministry of Consumer Services. Agencies like these are designed to help individuals decrease their debt through responsible means.
Taking charge of your own finances is tough—especially if you’re used to sharing debt, making payments together and living on more than one income. Talk to your Richmond Hill divorce lawyer about all your financial concerns while you’re going through a divorce; he or she can probably recommend strategies that will help you stay on track for a bright financial future.