With the divorce rate in Canada tracking at just below fifty percent, if you are married or living in a common law relationship, there is a potential of things falling apart in a big way. One of the biggest challenges you will face when going through a divorce is the financial strife it causes.
We are going to show you what steps you must take to help get back on solid footing.
Your credit score will take a hit
Even if you and your former spouse had rock-solid finances, the divorce settlement usually places all of the financial liabilities on the spouse who earned the highest income. This means you will be solely responsible for all of the debts plus any alimony or child support.
What compounds the issue is along with servicing your existing debts, you also need to restart your life by finding a place to live and buying a car. With all of this debt, your credit score is likely to take a hit.
Sign up for free credit monitoring services with TransUnion and Equifax right away. You must establish a credit score baseline, so you have a point of reference going forward.
Variables that impact your credit score
- Repayment history is the single biggest influencer of your credit score. Missing even one payment can send your credit score crashing. Make it a priority to never miss a payment, no matter how difficult it may be.
- Credit utilization is another important factor; the more debt you are carrying in relation to available credit, the lower your credit score.
We didn’t want to overwhelm you with too much technical jargon; by keeping your bills paid on time and reducing the total amount of debt you are carrying, your credit score will improve over time.
Getting expert help when you need it the most
One of the biggest obstacles you will face when going through a divorce is the feeling of being left on your own with no support.
You are not alone, and there are professionals out there to help you get back on your feet. Contact your nearest car dealership for assistance since you will need a vehicle to work and lead a normal life.
When you go through a local dealership, they will be able to help you with securing financing that works for your budget and situation. These local experts have assisted others who went through a divorce just like you.
The dealership also has people working for them that specialize in credit rebuilding; the experts are going to show you what steps you must take to improve your credit score. Don’t be shy; these are professionals, and they want to help you.
The good news is your life will get better over time; in fact, you have made the most important step by reaching out for help. Now that you know how to get back on your feet after the divorce, why not contact your local dealership today and start enjoying your life as you did before the divorce.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!