How can you avoid debt after divorce?
Going through divorce is scary on many levels. For many, the fear of the unknown is worse than everything else.
There are steps you can take to avoid debt and other financial concerns after divorce. You may not know what you are doing, but taking one step at a time will keep you on the right path.
Here are some tips for those who don’t want to find themselves in debt once they split from their spouse:
— Use assets to your advantage. The assets that you receive in your divorce settlement can be used as a springboard to a better life.
— Start an emergency fund. You want to save enough money for emergencies that could pop up at any time. This money can also be used for periodic expenses.
— Keep a close eye on your credit card use. There is nothing wrong with using a credit card, but you only want to do this in a responsible manner. For example, don’t use plastic to purchase luxury items.
— Limit your number of credit cards. The more credit cards you have the better chance there is that you will dig yourself into a hole. One card is likely enough to give you the benefits you need.
These are just a few of the many things you can do to avoid debt after divorce. This is a difficult time in your life, so you don’t want to make it any worse by taking on a load of debt. Instead, get your financial bearings and do whatever it takes to remain on track.
Source: Credit.com, “4 Ways to Avoid Debt After Divorce,” Mikelann Valterra, Oct. 26, 2015