| In
1998, I divorced my husband and with that divorce came the normal
splitting of property and assets. There also came a discussion
regarding our credit card debt. Although, we were married for
5 years and did use the credit cards as a couple, only my name
was on the credit cards. And suddenly my soon to be ex-husband's
recollection of shopping sprees, vacations, and prime rib dinners
that we did together faded. Sadly, it became my responsibility
to pay for the memories that we had created.
And guess what? Those charges were on several
high interest credit cards.If you find yourself in a situation
like this, don't feel alone. Experts have seen a 20 percent rise
in bankruptcy filings, and it is estimated that a large part of
this is due to divorce. Luckily, if you find yourself in this
situation, you will have several options. You could file for bankruptcy—as
statistics show that many people are—but you should know
that if you choose this option, the bad mark will stay on your
credit report for ten years. Another option would be to simply
make the payments.
But many people, after experiencing a divorce,
find that living on one income is a difficult adjustment after
a divorce, and are forced to only make the minimum payments. That
can make for a lot of debt. For example, if you had a debt of
$25,000 at an average interest rate of 18%, it would be thirty-two
years before you paid it off! You would be paying for those memories
well up into your 60's!The other option is to seek professional
help. There are several non-profit organizations that specialize
in credit resolution, and many people seek this type of help following
a divorce. Here's how it works.
For a small fee of around $14.00 per month they
will analyze your credit card debt, living expenses and income
in order to determine what type of repayment structure would best
work for you. Then they contact your creditors and work with them
regarding interest rates, late fees, and payment amounts. The
credit card companies, who understand that divorce is one of the
leading causes for bankruptcy, usually don't have a problem working
with the credit repair company. After all, they want their money!Although,
the non-profit agencies do not report credit counseling to credit
bureaus, most credit card companies do. You may look at this as
a negative, but many people don't.
Credit counseling can be explained a lot more
easily than bankruptcy, which is often a deal stopper for someone
trying to buy a home, or even purchase a car.You won't be allowed
to retain a credit card when enrolled in a credit counseling program,
but for most people who find themselves in this situation, that
can be a relief. Think about it as you are cutting them up, piece
by piece. I did. And with each chunk of plastic that fell in the
trash, it was a chipping away of the old and a birth of the new.
There's a feeling of relief that comes over you when you know
you don't have to worry about those mounting credit card bills.
And when going through a divorce, the more relief
you can have, the better..
This article provide courtesy of http://www.debt-solver.net | 
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