To do this, Kennedy suggests you pay off your debts in ascending order by paying off your smallest debt first while making only the minimum payments on the others. The snowball method is about using small financial achievements to fuel larger ones. Her favorite approach is the snowball method. the avalanche methodĭue to her experience, much of Kennedy's work now focuses on the practical financial strategies one can use to address the emotional toll of debt. However, remember that you must pay off the balance within the 0% interest period, or normal interest rates will resume. If your credit score allows it, you can also transfer as much of your debt to a 0% interest credit card as possible to buy yourself interest-free time to make a dent. Many places offer special considerations for people in difficult circumstances like divorce. Call your creditors, and find out what payment plans they offer.

Once you understand your situation, Kennedy says it's time to do the really hard thing - seek help. Your credit report will give you a detailed list of how much you owe and who you must pay. This is not the same thing as knowing your credit score, which is the grade given to your report by other companies. She also said that you should be regularly checking your credit report. They'll be able to guide you through deciding whether a payment plan or debt consolidation works for you. If you can afford it, Costas recommends you work with a financial expert to settle your debt. This can be terrifying, but until you understand the specifics of your situation, you can't overcome it.

If you haven't checked, you may not know about all the debt you owe.

Stay in communication with creditorsĬostas pointed out that divorce negotiations typically revolve around the division of assets meanwhile, the division of debt is forgotten.

As a newly single mother who had spent the last several years out of the workforce, she didn't have that. Her divorce took six years and cost hundreds of thousands of dollars. Costas is the vice president of EP Wealth Advisors and a certified divorce Financial Analyst. I also discussed your letter with Kathy Costas.

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