Managing Divorce and Surviving the Debt That Follows
How To Manage Your Debt After Divorce
Making it through divorce is challenging enough, but did you realize that divorce is also a leading cause of bankruptcy? For those individuals getting divorced, it is far too easy to waste through the assets and end up with all the debt during a divorce.
This is especially true during today’s troubling economic times that have couples divorcing amid foreclosures and out of control credit card debt. If not handled properly, a divorce can equal bankruptcy in just a few short months. Without that second income from a spouse, or the need to pay child or spousal support, money priorities quickly shift making it harder if not impossible to pay the bills on time or at all.
For example, a father made more than a million dollars annually prior to his divorce. Just a few short years following his costly divorce, this divorcing dad was forced to file for bankruptcy.
There is help during divorce and after that assists individuals in paying off their debt without running to the courts for a bankruptcy when all else fails. The divorcing dad could have utilized a debt guide designed to teach its readers how to get out of debt fast without having to file for bankruptcy.
Think you are immune to the bankruptcy syndrome? Don’t be so sure. According to Joseph Pomykala’s article “Wrestling with Bankruptcy,” the odds are stacked against you:
- In 1998, one of every sixty-eight families in the U.S. filed for bankruptcy. That number has increased on a regular basis throughout the years.
- Filings for bankruptcy protection are currently double what they were for the entire time period of the Great Depression.
- The average household is responsible for approximately fifty-eight thousand dollars in debt.
- Credit card debt and other unsecured debt have increased on average by fourteen percent each year since 1978.
- Approximately nine percent of bankruptcy filers have claimed bankruptcy at least one time before.
Of course the most relevant statistic of all states that forty percent of all bankruptcies are a direct result of divorce, unemployment and medical crisis. The fact is divorce impacts an individual’s life in a way that is almost unimaginable. By using a guide on consumer debt, you can lower your risk of relying on bankruptcy for help.
