Sophie Kinsella wrote an interesting blog about dealing with debt after divorce. Although the Oak View Law Group is not Canadian, it is found in many of the states of the US, her comments ring true in Ontario too. It just makes good sense. Thanks, Sophie.
Here’s is her blog…
Tips to follow in order to come out of your divorce debt
Many people believe that divorce is the beginning of a fresh new chapter in life, but that’s far from being true. Years of marriage often lead to years of accumulated debt, especially on the recent economic surface. Almost more than 50 percent of the divorced couples are under knee-deep debt and looking for a solution to come out of it. In this situation, it is generally not recommended to enroll in a debt settlement program as it sometimes becomes an intimidating task and hurts credit score. Instead, it is usually suggested to follow a few simple tips that will help you dig out of your divorce debt soon.
One of the most important tips to come out of your divorce debt is to make a budget plan. Make a list of all the sources of your income and expenditures, and determine where your money goes out. You may do it on paper or in a spreadsheet. Either way is good, but you have to see which one is more convenient for you.
- Modify your spending habit:
Being a girl, you might have a few bad habits when it comes to shopping. You might often end up buying unnecessary goods and doing impulsive shopping. But now when it is crucial for you to come out of the debt, you must have control over your spending habit. Always carry your budget along and abide by it. Every time you go for shopping, list down the items that you need to buy and are of utmost importance. Make sure, an item that is not there in the list, should not be there in the cart.
- Prioritize your expenditures:
When you are by yourself, you might wish to text your friend or log in to Facebook. But now it’s time to prioritize your expenditures. You must understand that now it’s time to focus on debt repayment rather than paying the bills.
- Make some wise decision:
When you have come half the way of budgeting, make some wise financial decisions. Think twice if you can do without the basic voice service on your cell phone in order to save $40 per month. Also, think if you can bathe your dog by yourself instead of keeping a groomer. These are a few important questions that you need to ask yourself in order to determine how to reduce monthly expenses.
Also, take a decision in regard to a debt payment plan. Determine how you are going to pay your bills. You may either pay the bills on a monthly budget cycle or may pay on a bi-weekly cycle, depending on your unique financial situation.
Consider repaying your debt in a snowball method. Aim at paying off your lowest balance first while making small amounts to the highest balance. This will help you pay off your debt and will boost your moral support.
In conclusion, the aforementioned are some effective tips to follow in order to get rid of your divorce debt.