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Hello all,
I am in the starting points of a divorce. My soon to be ex is getting almost $7000 a month from me in spousal and child support. Along with this I have some credit card bills each month for what she has charged up in the 12 months prior to her filing. It is approximately $20K. I am struggling to pay her each month, pay for my own living expenses, and then pay for the debt service on her credit cards.
I can't continue like this for long. Thus, I am thinking about just stopping payments on the credit card bills and let them go to collections. I know this will ruin my credit for a long time, but I am curious if I try to buy a house in 4 years time, when her support payments are over, will I even stand a chance to get a loan?
credit cards and divorce
Hi Tia,
I think it will be much easier for you to make the payments if you consolidate the credit card debts. As you have to make payments on several credit cards, you can transfer the balances from all high interest cards to the one with the lowest interest rate. With this your monthly payment will get lowered, and you will have to make a single monthly payment towards a single debt.
You shouldn't stop making the payments, as this can hurt your credit, and lower your chances of getting a loan to buy the home. Though four years is enough time to repair your credit, it is not at all advisable to allow your credit get hurt.
Thanks,
Aaron