How to Protect Your Credit During and After a Divorce

Going through a divorce is difficult.  One of the many areas that a divorce can affect is your credit.  The following are some ways you can protect your credit during a divorce and after your divorce.

• Mortgages: If you have a mortgage, it is very important that you and your spouse keeps paying the mortgage.  Failure to pay the mortgage on time, has the most negative effect on your credit.

• Automobiles: If you have any automobile loans or leases, as with a mortgage, paying them is also very important.

• Credit Cards: If you and your spouse have joint credit cards, it is extremely important to make sure that the use of the credit card and the payment of the credit card is resolved in the divorce.

For your separate credit cards: Then it is very important to pay more than the minimum amount due.  Even if you only pay a few more dollars than the minimum this will help in avoiding the large credit card interest rates.

As for which credit cards to pay off, there are a few schools of thought.  Typically, most experts advise you to pay off the credit card with the highest rate of interest.  Generally, that is good advice.  However, some people find it easier to pay off the credit card with the lowest outstanding balance.  By paying off the entire balance on a credit card with the lowest balance, it is easy to see that you are taking care of one credit card at a time.  Of course, it is important, that while you are paying off that credit card, that you cannot use that credit card.

After the divorce is final (or if permitted by the Court, then during the divorce): you should remove your spouse (or ex-spouse) as an authorized user from any of your credit cards.  Similarly, you should remove yourself as an authorized user from your spouse (or ex-spouse) credit card accounts.  This is because the credit card companies will include your spouse’s credit history on any account where you are an authorized user.

These are just a few areas that will help you protect your credit, both during and after a divorce.  David Badanes, Esq. and the Badanes Law Office, P.C., give real world advice and practical advice to their clients who are going through a divorce.  If you are thinking of getting divorced, please contact David Badanes and the Badanes Law Office, P.C.  David Badanes and the Badanes Law Office’s phone number is 631-239-1702, email at david@dbnylaw.com or visit our web site: www.dbnylaw.com.  The Badanes Law Office has offices in Northport and Uniondale.

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