Alexandria Legal Blog

During your marriage, it's easy to fall into the habit of using credit cards to pay for a variety of expenses. While there's nothing wrong with this, your good intentions can soon turn into a high credit card balance.

If you find yourself in debt and decide to divorce, your situation becomes even more complicated. It's at that point that you need to decide how to best deal with your joint credit card debt. Here are some ideas to consider:

• Pay it off together: If you have the money to do so, agree to pay off your joint credit card debt so that you don't have to deal with it during the divorce process.
• Equally divide the debt: Both individuals can transfer their portion of the debt to a separate credit card. This is often the best option if paying off the debt in its entirety is off the table.
• Cancel all joint credit cards: Don't give the other person the ability to make purchases that you may be responsible for in the future.

When you borrow money to pay for a home, you're expected to repay it as agreed upon in the terms and conditions. If you miss a mortgage payment, it's imperative to catch up as soon as possible. Also, reach out to your lender to discuss your situation with them and to determine if there's anything they can do to help.

If you continue to miss payments, foreclosure may be on the horizon. As scary as it may be, understanding your foreclosure rights can help put you in a better position to get through your financial crisis.

If you come to find that you have debt spread across multiple credit cards, it's imperative to devise a plan for paying it down as quickly as possible. As you make progress, you'll begin to feel better about the future of your finances.

Many consumers trying to pay off their credit card debt turn their attention to a balance transfer credit card. There are many benefits of doing so, including the fact that you can bring all your debt under one bill -- and one payment. With all your debt combined, you'll also save money on interest.

No one wants to file for bankruptcy. However, if you find yourself facing financial difficulties, it may be the best thing you can do. Taking this step can help you reduce or eliminate your debt, while giving you the fresh start you need.

There are many situations that can take a toll on your finances, thus increasing the likelihood of a bankruptcy filing. Here are several of the most common:

• Job loss: If you lose your job, you may find it difficult to keep up with your financial obligations. As these pile up, bankruptcy may be the best way to get relief.
• Medical problem: A serious health issue can result in large medical bills. Furthermore, it can hold you back from working, which impacts your finances across the board.
• Unexpected expenses: You never know what types of expenses will enter your life. For example, you could run into a major home repair project that puts strain on your finances.
• Divorce: After a divorce, you may find yourself in a very different financial situation than when you were married. This is particularly true if you're left with a lot of debt and not as much income as you once had.
• Credit card debt: Over time, credit card debt has a way of getting out of control. If you're unable to make any progress, bankruptcy may be the best way to finally find relief.