How can I manage debt after a divorce?

How can I manage debt after a divorce?

It’s no secret that divorces can be expensive. This is especially true if you’re ordered to remit spousal support, which can be challenging when starting over after the end of your marriage. Proper budgeting is crucial for staying current on this and other recurring payments, as explained by The Balance

Make a list of debts you owe

A listing of the debts you owe can be used as a guideline for your budget. Along with debt amount, also include when the bill is due each month so you can make sure you’re using your income correctly. You can also create a bill pay calendar, which will help you stay on top of your debt on a month-to-month basis. 

Create an emergency fund

Along with paying down debt, you should also work towards creating an emergency savings fund. This will help you when faced with emergency expenses, such as car repairs or medical bills. If will also save you from using credit cards or taking out loans for surprise expenses you’re unable to afford. Even taking a little bit of money from your paycheck each month can help keep you on track financially. 

Make payments on time each month

Whether it’s spousal support, a utility bill, or healthcare expense, don’t lag on your paying your bills. Paying bills late can leave you subject to hefty fees and penalties. It can also ruin your credit score, which will prevent you from being secured for loans or even buying a home. If you find your spousal support is too expensive, don’t simply stop paying. Instead, inform your ex as well as your lawyer so you can request a modification from the court. You should also contact any lenders if you can’t keep current on payments, as you may be able to work out a deal until your financial situation improves. 

 

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