Debt After Divorce

Are you struggling with debt after divorce; barely keeping your head above water?

American families are hurting. Jobs are disappearing, the economy seems to take one victim after another, and more than 65% of all American families are drowning in debt. The three leading causes for an American to wind up deep in debt are loss of employment, major medical problems, and by far the worse is divorce.

Divorcees face the toughest time because after you have been emotionally drained from the divorce proceedings, you have to face the debt that you incurred, a lower standard of living due to the loss of income, and the increase in expenses you will incur now that you have separated.

Getting out of debt after divorce

So how can you start your life if you're carrying around old debt after divorce? Bankruptcy is always an option, but should only be considered as the absolute last option. This is because declaring bankruptcy will affect your ability to get credit, and your creditworthiness, for many years.

Thankfully there are other options. Debt Consolidation is one option that you should consider. There are many Debt Consolidators out there that make great claims of success within their advertising, but then fail to come through on their promises. You need to look for companies that have good reputations, money back guarantee, and show actual results or proof of their work from previous clients.

Just as the name suggests debt consolidation consolidates all your debt together leaving you with one payment and can even reduce the debt you have to payback. It's a solution to your current debt problems leaving you with a payment that you can afford. Most of the time, FH Financial is able to cut your payment in half from what you are currently paying on your minimums.

In fact, if you take the time to do the math and total up the payments you are making now vs. the payment you will make, you'll be pleased with the amount of savings you'll enjoy. You can really save anywhere from 40 -60% off of your balances.

For example: A recent client, Maria. G had just completed her divorce when she contacted a Debt Counselor at FH Financial. She was drowning in debt and had fallen behind on her credit card payments. The debt counselor explained to her all of the debt relief options available and then showed her the different payment plans. Maria's payment went from $485 a month down to $250/month when she consolidated her debt. Her payment plan will have her debt paid off in 36 months.

A Debt Counselor will give you a free consultation and show you the debt relief options available to help you. There is absolutely no obligation and you will be able to get all of the information first. Then, if you decide debt consolidation is right for you, the counselor can set up an affordable payment plan, assist you with money management education, develop budgeting skills, and a host of other services that will help you find financial freedom. It's actually a good place to start if you are unsure what your next step will be.

Article supplied by FH Financial. May not be copied or distributed without the written consent of the author.

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