I was divorce about a year ago.
Division of Debt in divorce I got card with approximately 18k on it after having to put house taxes of over 6k due to circumstances.
Since the divorce I added another 6k in to the card.
I had come to conclusion to stop that about same time got notification from card they were reducing my limit to barely over what the balance was.
Also tried to remove spouse from card but will not because they say my debt to income ratio is too high, although same bank had no issue refinancing my vehicle (to reduce monthly expense) 30 days prior.
I need to reduce the debt and severe tie to ex so seeking options for the credit card. Current balance is approximately 23,000. Interest Rate 11.99%. Payment approximately $500. Current Credit Score 676.
In order to reduce balance quicker and to severe tie to ex should what is best alternative. At most I can continue the $500, would honestly help if a little less. What do you suggest? If they would not do full amount would they do perhaps $15,000.
Your options are fairly clear cut. You can either get an unsecured debt consolidation loan or you can file bankruptcy to discharge your debt and liability for the card.
Bankruptcy following is not unusual. When you take a two income household and dive it up into two one income households the math typically doesn’t add up any more.
The bank is not going to let you out of the joint liability with your ex. But you went through divorce to get a fresh start with your relationship so you might as well consider bankruptcy to make a clean break and get a fresh start with your financial life.
If after bankruptcy you wanted to continue to give your wife some money towards that credit card debt, that’s something you can elect to do.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth, How Do I Get Out of Debt Quickly? Change Your Mindset, and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.