As we have discussed in a recent post, many people in Kentucky and elsewhere experience financial difficulties after getting a divorce. Whether your problems are short-term or more long-lasting, they can be frustrating and disheartening, to say the least. The sudden loss of income and security when going from a two-adult household to managing your finances on your own can result in such financial issues as bad credit, unpaid bills and bankruptcy.
With this unfortunate news, you may wonder how you can get back on your feet after the end of your marriage. Not everyone is fortunate enough to receive spousal or child support, or receives enough to help them get by. You could also be the paying parent, which might make a significant dent in your income. The financial experts at Experian have provided the following tips on improving your credit and regaining some financial footing after experiencing a significant setback like a divorce:
Always pay your bills on time. Even your monthly utility bills, like power and water, have an effect on your credit score. Consistently paying these bills late will negatively impact your rating.
Keep your debt at a minimum. It is possible, and often recommended, to improve your credit score by having a few credit cards, but this won’t help if your cards are maxed out. Only keep two or three cards active, and charge just enough that you can pay them off each month.
Reduce your spending. Making simple changes to your spending habits, such as eating out less, paying cash for items instead of charging them and eliminating unnecessary expenses (cable television, pricy gym memberships and the like) can give you more money at the end of the month and allow you to reduce your debt.
Financial difficulties are not easy on anyone. However, wise planning and spending may help you recover from these challenges sooner, rather than later.