Debt and Divorce

The following is a guest post by Steven Van Note from Credit Card Debt Consolidation Champions.

Marriages are stressful enough without financial problems; however, Americans who are overextended on credit card debt find that their financial hardships often result in divorce. It is important that couples in this position realize that they have options for relieving their financial stress, which in turn will alleviate the strain on their marriage.

Photo by elektra.

A Lack of Disclosure

Married couples who are undergoing financial problems often end up in divorce if they are not forthright in disclosing everything in regards to their finances. If a couple is not openly transparent when it comes to money, it can only lead to bigger issues of trust. The relationship may also suffer if the two spouses have differing viewpoints on spending and saving. When financial problems arise, another common mistake couples make is blaming each other for who was at fault. Instead of playing the blame game, the focus should always be identifying the problem and then fixing it.

The Steps to Debt Relief

As with most problems, the all-important first step is admitting there is a problem. From here it is important that both spouses are committed to being completely open about their finances. This means no more hiding credit card statements or throwing away receipts of the items you purchased. The next step is to review your budget. See if there is a legitimate possibility you can pay off your debts by eliminating unnecessary expenses. If you think that you have the income to support paying off your creditors in full, contact them and negotiate to have your interest rates reduced. If this does not work, try contacting a credit counseling agency. These agencies are typically non-profit, can usually get your interest reduced to around 9 or 10%, and can offer you credit card consolidation. If your financial problems are more serious, you may consider a debt settlement program. This is a more aggressive alternative, however, and thus has higher risks and greater credit damage associated with it. Debt settlement should therefore be approached with caution and be reserved only for severe debt situations.

Stay Disciplined

No matter what you do as a couple to deal with your debts, you cannot be successful without discipline. Stick to your budget and commit to your decision if you want to see results and put the difficult times behind your marriage.

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