Divorce is like any major financial decisions, it is very expensive. It means that you are going from a shared residence to paying for two homes. This will cost you a lot of money and can be quite difficult if you cannot sell your house or locked in a lease o n the shared residence. Not to mention that you will have to make payments on the legal fees attorney and other expenses.
In some cases, you find that financial issues might have been a contributing factor to the divorce. This means that the situation is actually worse. It is quiet common to see people come out with major debt and damages to their credits. It may take you some tome to repair your credit but as long as you get it done, you will not have many issues.
Start living on a budget
Rebuilding your credit or building a new one after the divorce is all about making bill payments on time and reducing all the debts as much as you can. To do this, you will need to evaluate your finances and finance source to determine how much money you have. Are the finances enough for your new lifestyles?
If the finances are not enough, you need to find new ways to make more money or spend less money than you earn. You could look for a new job to ensure the income is enough for your expenses and bills. Create a budget to help you make the best out of that situation. If your spouse was in charge of the bills, you need to learn how to do it or seek help from a friend or family who will help you get better at it.
Keep constant tabs on the credit score
This is very helpful in keeping a positive credit score. You also get the chance to learn what is affecting your credit score in a negative or positive way and this will help you improve it. You can actually get the recent copy of your report from the bureaus through annualcreditreport.com. if you have ordered all your free reports, you have the chance to purchase through the bureaus. The credit score gives you a great perspective on the credit history.
Make sure you and your Ex-spouse are addressing the joint Debts
This is one thing that many people fail to do once they are done with the divorce proceedings. If you have an open account with your ex, it could affect your credit score majorly. Both your non-actions and actions will continue to show up on your credit, which is why it is a great idea to ensure the settlement has legal steps on how you will take care of the whole issue. Keep in mind that the debts you are responsible for are in your names and your spouse’s debts are in his or her name.
A financial struggle is common, especially after the divorce. Make sure you Deal with all the bills you cannot afford to make payments on. Make sure you deal with all your loans and credits before you apply for an individual loan.