By Brent Tucker
When you are going through a divorce, your finances can get a bit confusing. ‘What money is mine’? ‘What do I have to pay’? ‘What do I do next’?
When I was getting divorced, I never really considered the ‘me’ part of the equation. I was worried about the joint accounts, joint credit, and joint kids, but I didn’t take any time to consider what I was doing to myself financially. I ended up making a BUNCH of mistakes, which I sincerely hope you can avoid. Most of my mistakes revolved around the management of credit, but I also made mistakes regarding WHEN to get credit.
Let me give you a couple of key things to think about:
1) A fairly hefty part of your credit scores, about 10%, revolves around HOW LONG you have had your accounts open. A new account has less power than an older account.
2) When you get divorced, you may not be able to keep some of your credit cards, and you may have to sell or give up your stake in cars, houses, or other assets.
Therein lies the dilemma. If you end up getting rid of a credit card, as an example, that you have had for 5 years, you may take a hit on your credit scores. Your house that you have been paying on for 10 years may go away. In other words, the AGE of your credit may be reduced.
This article is continued here: http://creditconundrum.wordpress.com/
For information on recovering from the emotional pain of divorce go to www.RebuildingWhenYourRelationshipEnds.com