It wasn't all that long ago that
American's faced great financial crisis. As a nation, we struggle
with debt, and it keeps us from achieving a better life. Debt
Education is here to help you change all that ... just ask!
REAL PEOPLE ... CARING ABOUT REAL
ISSUES
Divorce, Debt and Credit
Did you know that 83 percent of divorced people surveyed said
debt and financial distress were the number one factor in the
disintegration of their marriages?
In record numbers, American couples are seperating because of
the stress debt and poor credit ratings places upon their marriages.
In fact, as callous as it sounds, you really should check the
credit report of the person you plan to marry before the ceremony.
Sad as it is to state, joint banking accounts are more permanent
than most marriages. Creditors do not separate joint accounts
when couples divorce. Even if your ex-spouse agrees to take responsibility
for payments on a joint account, if he or she does not make the
payments, the creditor will come after you for that payment.
You might want to consider keeping all your financial accounts
seperate.
And, be aware that in some states, if your spouse has a credit
card, you might also be liable for their debt. If you want to
keep finances seperate, never co-sign for any credit card or allow
them to place you onto their account as a card holder.
In a separation or divorce, you will most likely negotiate the
closing of all joint accounts and divide up the debt. However,
like we said, whomever is on those accounts as card holders is
responsible for the full debt amounts. You will want to get from
under that burden of debt as quickly as possible and might need
to see counsel from a professional debt consultant.
Creditors are not allowed to cancel credit accounts because your
marital status changes. However, if the credit was based upon
your ex-spouse's income, you may be asked to reapply. Creditors
want to give you a chance to prove your credit worthiness.
It is always a good idea to check your credit
report for accuracy every year or two. We recommend you check
your credit report one year following a divorce. Checking your
credit report will assure that accounts have been closed and that
your ex-spouse's individual account information does not appear
on your credit report. If you need to re-build your credit you
can do it yourself or do it more quickly through credit
repair companies.
There's a lot of information to read through on
the Debt Education website, but we feel this is extremely important
material. We strongly recommend that you bookmark
this page right now. This will allow you to read
at your leisure, and should you need to attend to other matters,
easily return back here at your convenience.
The Debt Education website was built for you. Please explore
our website. You'll find resources and information on virtually
every aspect of financial planning and money management. These
debt delp resources are designed to help you get out of debt and
stay out of debt. You can achieve financial independence.
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Debt Education PO Box 5156, Santa Cruz, CA 95063
