Debt and divorce
If you are currently going through a relationship breakdown you may find yourself in a position where it may be difficult to keep up with your financial commitments.
If the change in your circumstances means that you will no longer be able to repay your debt according to the initial repayment agreement, you will need to inform your creditor as soon as possible.
You will need to reassess your income and your expenditure and draw up a budget sheet which will allow you to see what monies you will have available to spend as well as work out how much you can afford to pay to your creditors on a monthly basis.
Divorce brings its own stress elements, but the added worry of debt is something that you can find a solution for.
Joint debts that were taken out with you and your partner will mean that both parties are liable for repayment, however, if your partner has taken out debt in their own name, then you will not be liable to make payments towards this debt.
If you are struggling to repay your mortgage, it is important that you talk to your mortgage lender straight away regarding your circumstances. It may be possible to take a payment break which would give you some breathing space whilst you figure out which solution you can take to help you deal with your financial situation.
Many people take out joint bank accounts or joint credit cards. In these circumstances, it may be wise to freeze those accounts to save any further debt being accumulated by either you or your partner.
You will need to open a separate account so that your income can still be paid into your account as well as set up new direct debts so that you can continue to pay your essential bills.
Finding yourself in a situation where you have to work out all of your income and expenditure after your circumstances have changed, can be a daunting process, but if you write out a budget sheet, this will help you keep on top of what you need to do in order to keep control of your finances.
There is always help and advice available if you have any questions regarding how to handle your financial situation as well as knowing your rights in circumstances following a relationship breakdown.
Do not be afraid to pick up the phone and ask for help. This way, you can minimise the impact of your finances having an adverse affect because of a divorce situation.
Call our specialist debt team on 08000 915 004 to find out how we could help you.