Credit Issues For Military Personnel - Taking Steps To Protect Your Credit During A Divorce
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It’s a sad fact that divorce does strike military personnel, more often than most of us would like to think. While going through a divorce is a stressful situation with a lot to think about, one area that military personnel should not neglect in this trying time is their credit. Neglecting one’s credit during a divorce can have devastating consequences down the road, prolonging the suffering caused by this unfortunate occurrence.
Credit Problems During DivorceThe biggest credit problem that a divorce can cause stems from joint accounts and co-signing. While you are married, it can be convenient and helpful to have a loan or financial account that both parties can access. The problem is that once you get divorced, you are not divorced from those joint financial responsibilities and if either party becomes derelict, both parties’ credit will suffer.
Consequences Of Credit ProblemsShould one of the divorced parties begin to miss payments, the account can go into collections, meaning continual harassment from credit agencies, a black mark on your credit report that could take years to repair or even a lawsuit attacking your bank accounts. You’ll also have trouble getting credit for purchases in the future, which can be a real problem for those trying to start a new life after a divorce.
Protecting Yourself From Credit Problems During A DivorceOne thing you can do to protect yourself is not to co-sign. If someone needs your help with a loan and you are willing to help, take on the loan yourself. That way, the payments can come to you and you can make sure that they get made every month. When you are splitting up with your spouse, take the time, however painful, to talk about the joint accounts and how they will get paid. Make sure both parties understand that failure to make those payments hurts them both and that a thought out plan for payment will make both sides’ lives easier in the long run.
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