Personal Debt Consolidation


Is it a good move post-divorce? 

Going through a divorce can be emotionally and financially painful. Now that the decree is final, what’s next? First in order should be putting your individual house in order. Exploring housing options, setting up checking and savings accounts, and dealing with outstanding debt need to be at the top of your list.

So, exactly what should you do with debt for which you were put on the hook?
    
One crucial step in getting your financial house in order is to set up a budget. After
doing so, you can determine if paying off your debt at this time is within your budget or if you need to seek alternative solutions. The primary goal should be to reduce your credit card debt as quickly and efficiently as possible. Pay off as much as you can. The longer the debt exists, the more interest expense you will pay. If your budget allows, cut your discretionary spending to allow for maximizing the pay down of the debt more quickly.
    
If there is too much debt to eliminate quickly and stay within budget, it may make
sense to consolidate your debt. What’s the best way to consolidate debt? 

Personal debt consolidation simply means taking all of your credit card debt and
consolidating it into one amount, thereby making it easier to manage and hopefully lowering the monthly payment. The key is to secure an attractive interest rate.  Discuss options with your financial advisor, attorney or other trusted personal advisor.

What about other debt that you incurred in your marriage? Even though the court may say that one person is responsible for paying off debt, creditors will still hold both parties responsible. Therefore, if your ex fails to pay, your credit score could be at risk. Make sure that all joint accounts are closed as soon as possible so that no new debt can be incurred on those cards. 

IMPORTANT:  The federal government allows you to check your credit report
annually via three separate reporting agencies. Keep an eye on your credit by
obtaining one of these reports every four months. You can get started at
www.annualcreditreport.com. 

It’s your tomorrow. Call us for a complimentary review.
Call 513.618.7080 or visit www.lenoxwealth.com to Fund A Life You Love®.

 

Important Disclosure:  This material presented by Lenox Wealth is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Investments in securities and other investment products entail risk, including the risk of loss.