The “3 D’s” Death, Divorce and Debt

According to stats for 2008 the number of people whose relationships fell apart (121,799) was more than half the number of those who tied the knot (232,990). The average age at the time for divorce was 41 for women and 44 for men.

The fallout from divorce or break-up comes in a number of forms. Initially there is the emotional reaction fear, isolation, rage and grief – the trauma can be akin to the death of a loved one. Just like grief of any kind it is common to move back and forth between the stages. The thing to remember is you will eventually make your way through.

Next are the financial concerns. For most people break-up means a significant change in income and lifestyle, as the financial load is no longer shared with a partner. Many women have given up on their careers to look after the children, so faced with a lack of financial support; this can be one of the toughest aspects to deal with.

If you already have an element of debt which was problematic when you were a couple, this is likely to cause you much worry and sleepless nights unless you deal with it. We do actually have a good rescue culture in the UK which can provide you with a “soft landing” pending resolution of your divorce settlement. The solution will depend on the extent of your debt and also on your medium to long term prospects of being able to repay the debt. If you only have a couple of debts, you should be able to cope with providing your creditors with details of income and expenditure and request that they allow you to reduce your payments and that they freeze or reduce your interest charges for a period whilst you sort out your finances.

If you have a number of debts including credit cards and loans and you simply cannot cover minimum payments, it helps to have help from a specialist that can intervene between you and your creditors and seek to reduce your payments and interest charges.

For further information visit The Debt Advisor.