Dealing with Debt after Divorce

• You are not alone
• Face up to it
• Make a plan
• Follow through with your plan
• Avoid further debt

For many people living life after divorce can mean dealing with debt.
Here are some tips for not letting it run (or ruin) your life.

You are not alone

Even those who are not divorced are dealing with more and more debt.  Many people are having trouble living within their means.  Major life events such as losing your job, divorce etc result in financial upheaval. This is a very emotional issue for many people.  Get professional help if you feel you cannot tackle it along. Let bygones be bygones.  What you did in the past cannot be changed but what you do from now on will affect how you deal with debt.  Focus on that.

Face up to it

Sometimes this can be the hardest part.  We are very good at putting off anything unpleasant, of finding excuses to do other things.  The problem is that the issue grows in the back of your mind, sapping your energy and perhaps keeping you up at night.  Worse the debt is likely growing too.

Here’s how to face up to it

• Get piece of paper and divide into two columns

• On the left side, list all your sources of income

• On the right side, list all your debts

• Start with essentials first: electricity, phone …

• Next list monthly payments: loans, credit cards…

• Lastly list things you can survive without but tend to indulge in

Make sure the first two categories (essentials) are covered before you buy that ticket to the space station (indulgence). You can now use a treat to reward yourself if you have paid all the essentials.  Do not go overboard though.