How to Protect Your Credit Score and Divorce-Proof Your Finances
If you are going through a divorce, most likely there are lots of things on your to do list, and lots of details to attend to. One of which is to protect your credit score during divorce. Understanding the link between your credit score and divorce can help prevent financial pitfalls. According to a survey conducted by Debt.com, 48% of respondents saw their credit score drop after separating from their partner, often linked to financial strain and changing household incomes. Going from a two-income household to a single-income household can cause a significant change in your financial situation, and this effect may be seen in many unexpected ways.
Especially in recent years, where we have seen inflation and rising interest rates result in significant economic pressures, it is increasingly difficult to manage debt and credit during a divorce. In 2023, credit card interest rates rose to record highs, which might make it harder to keep up with debt payments and maintain a high credit score.
Run Your Credit Report
The first thing you want to do is to run your credit report. You may not like what you see, … Read More... “Did You Know: Your Credit Score Could Drop During Divorce?”
