While filing for divorce, it would be important to clear all your standing credit card debts. After divorce many women find it extremely hard to come to terms with their present financial position.
Women after divorce on one hand would have to ensure an income of their own and on the other hand have to clear their credit card debts.
Some steps which can be taken into consideration during divorce and clearing credit card debts are as under-
Debt settlement: Debt settlement is considered as a most suited option when you have unsecured bills and you are behind on your payments. For debt settlement alternative you would have to qualify for the same. People who can take the help of debt settlement in most cases have more than $10,000 in unsecured loans in terms of medical bills, signature loans and credit card balances.
During debt settlement, a settlement firm would negotiate with your credit card companies to reduce the total balance that you owe to aid in the payment of your balances. Creditors in most cases are willing to settle less than the actual amount to be paid by you. After an agreement has been reached between the creditors and you, you could make the required payments until the reduced balance is paid.
The cost: Credit companies have different ways of determining the cost. There some firms which charge a percentage of the total outstanding balances. Some credit companies calculate the amount to be charged on what the customer would save through them.
The debt settlement process takes around two to four years for completion. The amount which would be reduced would be different for different credit companies. In most case the amount is reduced by around 30% to 50%. In the initial stage, the settlement company would examine your present financial situation. During the examination the company would inform you about the amount to be paid and the plan to be executed.
When in the process of settling your credit payments, you could also file for bankruptcy. You should always remember that declaring bankruptcy should be your last option. Bankruptcy can completely destroy your credit card rating and hinder your ability to get credit in the future.