For some people, divorce is financially liberating. For others, meanwhile, getting divorced means a financial disaster. After a divorce, many people struggle to achieve financial stability, and, as a result, get a bad credit score either because they cannot maintain the pre-divorce standard of living or because the joint debt is tearing their budget apart.
Not to mention that divorce is almost always an emotionally and mentally exhausting process. Our Salt Lake City divorce attorney Emy A. Cordano reminds readers that even after divorce, creditors and debtors can bother you on the basis of the joint-debt agreements signed during the marriage.
These joint debts are tough to handle, but in no way does it mean that you have to put up with a bad credit score after divorce. Today, we are going to offer you a tried-and-true strategy on how to fix bad credit after a divorce in Utah.
Face your financial woes head-on
First and foremost, it is paramount to have an understanding of where you stand financially. You need to be aware of all the accounts and factors that may be negatively affecting your credit score after a divorce. Therefore, you need to request credit reports from Experian, TransUnion, Equifax, and other credit bureaus and institutions.
Note: Experian, TransUnion, and Equifax are legally required to provide Americans with a free copy of their credit report each year, as stated in the Fair Credit Reporting Act (FCRA).
Pay off joint debt and close shared accounts
If you and your ex-spouse have shared or joint credit card accounts, it is vital that you and your ex-work together to pay off the joint debt and close these shared accounts.
If you are not on speaking terms with your ex, consider getting legal help from an experienced divorce attorney in Salt Lake City or elsewhere in Utah. If you do not pay off the joint debt in full and do not close the shared accounts, you may face additional charges after the divorce.
If you and your ex-share mortgages, the best option is often to sell the marital home. You could also use that money to pay off any other existing joint debt.
Rebuild, rebuild, and again… Rebuild
To begin rebuilding a bad credit score after a divorce, it is important to determine which accounts have missed payments, which are delinquent, which have landed in collections, and which have a negative balance.
Basically, rebuilding credit is all about paying your bills on time and reducing your debt, which means that you will have to live on a budget until you achieve financial stability.
Take out a new credit card
This one might sound counterproductive and bizarre, but taking out a new credit card and making payments on time can help you show good credit utilization, which is important to fix a bad credit score after a divorce.
Needless to say, never take on more debt than you can handle. If you cannot currently handle any debt, wait until you achieve financial stability while implementing the above-mentioned tips to rebuild your credit score after a divorce.
Fixing a bad credit score after a divorce is a complex matter. Do not hesitate to speak to a Salt Lake City divorce attorney to get a legal consultation about your particular case. Call Emy A. Cordano at (801) 901-8159 for an initial case evaluation.