When you were married, you had two incomes every month to cover all the expenses. Unfortunately, even the best marriages can veer off course and end in divorce. And when this happens, it can bring your financial planning to a screeching halt. In fact, bitter divorces can sometimes lead to financial ruin. If this above situation sounds familiar, you’re not alone. However, even if you’ve hit rock bottom financially, you can recover.
Evaluate Your Financial Picture
From your outstanding debt to your annual income, you need to have a firm grasp on your financial picture. You need a clear understanding of your debt-to-income ratio and how you can lower it overall. If you have credit card debt or outstanding medical bills, you need to reach out to each one and see how they can help. Even if you’re in collections, medical bills can be paid off on a payment plan.
You can also ask your credit card lenders to reduce the interest on your cards. They may also have hardship programs you can join to pay off your debt without ruining your credit. If possible, leave the account open while paying down off the debt. Closing it could negatively affect your credit. You should also reach out to a financial consultant who can give you tips on how to save as well.
Make Saving a Priority
When you’re financially strapped, every cent counts. However, you still need to find ways to rebuild your savings. Even if it’s only $50 a month, you need to keep it savings and not touch it. If you’ve been paying into a life insurance policy, you should consider selling it. Depending on your policy, you can get upwards of 30 percent of the cash value, which means you can allocate your money to other areas that need it the most. But before you make a final decision, you should make the most out of the free online guides you can review before proceeding.
When you’re in financial distress, it’s easy to let everything else in your life fall apart. The ongoing stress of not having enough can demotivate even the most ambitious people. And if still going through a divorce, it only makes matter worse. However, now’s the time to kick things into overdrive and get back on track. In addition to creating a budget you can stick to; you need to have a proper organization in other areas as well. If your home is in disarray, tackle the job one room at a time. Even if it’s only putting the dishes away and or cleaning the bathroom, put the effort in. You’ll feel better mentally and may even want to continue getting your home back in order.
Be Kind to Yourself
Going through a divorce and trying to stay financially afloat can be overwhelming. Make time to pamper yourself and show yourself some much-needed love. Even if your divorce is amicable, ending a marriage is never easy. Be kind to yourself and reach out for support when needed.