Everyone knows that divorce is difficult, mentally and emotionally straining, sometimes depressing and often very sad. Divorce can wreak havoc on your nerves and your self-esteem, leaving you feeling empty and lonely. Most of all, divorce can wreak havoc on your finances, leaving your credit damaged, your bank account empty and your wallet or pocketbook bare. This article discusses improving your credit after a divorce and provides some valuable tips on how to do just that.
Determine Your Monthly Expenses:
The first thing you need to do in order to improve your credit after a divorce is determine your monthly finances. Take all of the bills that are in your name - such as automobile loans, electricity bills, rent or house mortgage and everything else - and list it and the amount you pay on a sheet of paper. Then, add up to receive a total of the money which is outgoing every month. This will help you get control of what you are spending and cut out unnecessary spending.
Determine Your Monthly Income:
Next, you will need to determine your monthly income. You can factor in child support or any extra money you receive other than your salary. Once you have both figures, subtract your monthly expenses from your monthly income. You will know how much extra money you have once all of your monthly bills and expenses have been taken care of. This is the money you can use for getting your credit back on track.
Start to pay off the outstanding bills which are against your credit. Determine which one to pay first by the interest. The highest interest bill gets paid first and then the next highest interest and so on. Pay the maximum amount you can afford to pay on the bill rather than paying the minimum amount - this way, you will get rid of the bill faster.
After you’ve paid up all of your outstanding debts, you will need to send receipts to all three major credit bureaus along with letters showing which bills you have paid off completely. This will get the marks against your credit taken off. You will now have the chance to slowly build your credit back up. Try to pay more than the minimum payment on all of your credit card bills and other bills. This will keep you from showing as a slow payer. Also, try to keep the balance on all of your credit cards under 30% of the credit limit.
Divorce is difficult and when it comes to finances and credit - it’s downright devastating. It can sometimes take years to recover from the financial stress a divorce puts you under. Thankfully, with these methods, you’re able to pay off your most important credit debts quickly and get your credit back to the green! You can get things straightened out though, if you use the tips and tricks above.
Danielle L. Taylor is the author and editor for Xstilla.com one of the most active divorce support communities in the Web. To learn more about divorce, child support, dating or to discuss your problem with understanding members of the community visit http://www.Xstilla.com!
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