There is no unpleasant ordeal as a divorce in late 50’s. The spouse may decide to quit a relationship any time they feel the relationship is up to no good. Divorcing at this age comes with a lot of challenges. You have got to come to terms with the life of being single again or you may also decide to venture into another dating journey. But when all is said and done, critical issues arise that call for one’s due diligence to tackle them especially on finances. Just like in the boxing game, when given a knock out, all is not lost, you do not remain on the ground!, You have got to stand up and motivate yourself, you may be the victor in another game.
Dealing with emotional instability does not mean revenge
During these moments, you are prone to emotional instabilities, and hence your credit is endangered too. Due to elation, you may feel ruining the other’s credit is formidable punishment. That is not going to help at all. There have been a number of cases where clients come to lament their ruined credit while they were in the process of finalizing their divorce. The husband, for instance, may fail to honor an agreement to settle a said amount to designated banks. This ruins the wife’s credit. The repercussions are, to lose the chances of getting mortgages, good terms on credit cards, auto loans and lack of establishment of security deposits. To eliminate these unfortunate occurrences, this article will focus on several ways through which you can protect your credit during divorce.
Update your address immediately!
The moment you move out of your marital home after divorce, it is advisable for you to change your credit card address. The creditors are the most second that you should notify about your divorce. Submit your new address card to the post office. Also, if the post office offers online services, update your address and change your log in details if any. This is in case you had shared these details while you were both married. Doing this not only safeguards your bills and credit card statements, but also, the financial statements are addressed to your new residence. Missing the payments on a credit account is the final blow that should get you off-guard after divorce. Maybe your ex- husband or wife got a mail about the same, but did not care to let you know. Changing the addresses nullifies the chances of your ex hitting back by hiding some of your important details.
Close all your joint accounts
There have been cases reported where couples exploit each other through the joint accounts. One of the cases, the wife argued that the husband was asking more loans via the joint account which was connected to their individual personal accounts. The husband could fail to pay on time and cash was always, deducted from the connected accounts. The wife fell victim because she failed to take precautions to dissolve the joint accounts. The demerit with the joint account is that, you are both responsible for the debts. Both of you have unlimited liabilities of the joint account. The credit expert advises that, it is noble to terminate the joint account at the earliest stage of the divorcing process. Since the activities of the account report to the credit bureau with your names appended, this will solely affect the credit score of both parties. To avoid harming your credit score for life, make a diligent move by ensuring that all the joint accounts are closed and the respective banks are officially notified.
Take a noble step and notify your creditors closed accounts
The financial experts advise that, is vital for you to ensure you write an official letter to the creditors notifying them of your divorce and the closed accounts. Also, ask for all the current account statements. Tell them that you are no longer attached to the closed account and you won’t be liable for the accumulated debts after the stated dates. They should put those accounts in inactive mode in order to safeguard your credit card. Also, tell them to send this information to your credit card company. If you agree with your ex that either you can retain the account, then ensure you remove all the details of the other person in the account details. This curbs the risk of accumulation of unauthorized debts. The revoking should also be done via certified mail for security reasons.
Avoid fighting for the rights of the matrimonial home
This will positively help most women. They are more prone to the emotional attachment to the homes where they bore and raised their kids than it is for men. It is also influenced by other factors such as the location of the homes. The homes may be located in rapidly growing areas, where the value of the home appreciates day and night. If you are inclined to the good catch, the home would fetch in future if sold. The house may be in debts and mortgage loans which will thwart plans of selling the home in the future and consequently harming your credit. You may not be even able to pay for the rest dues of the home. The best way to avoid these drawbacks is by refraining from the fight to retain the home. Just move on convinced you will afford a better home with less or no liabilities.
Create a post-divorce reduced budget
Mostly when together as a couple, there are chances of double income. The husband as well as the wife brings home some cash either daily or monthly. This avails surplus fee for all your basic needs and luxuries. After divorce, the scenario changes. You now move from a double income home into a single income home. You need to strategize on obligations you can handle without straining your credit score. You housing costs should be taken into consideration. You must prepare to make tough decisions alone, fight so many battles alone and also cerebrate victories on your own. Involve a financial advisor for you to be enlightened on how to go about any major financial struggle. Remember this time you have no shoulder to lean on. Regulate your budget to fit the mortgage payments, maintenance and insurance expenses. If you find yourself almost going beyond your limit, cut on the cell phone premium plans and other luxuries which are not basic. Failing to monitor your credit card and auto payments as well as personal loans can drain your credit and harm your credit score. So, after the divorce settle down to the drawing table and re-write your post-divorce budget.