How To Deal With Family Breakdown, Divorce And Debt

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Stop worrying so much about how to deal with debt. Learn what positive steps you can take yourself, and when you should consult a financial advisor.

When a relationship ends, financial matters often need to be resolved and things can become ugly enough that you suddenly find yourself wondering how to deal with debt. This can be especially hard when you have to support children and you are not receiving help from your ex-partner. It can get worse still if you are left to pay off your joint debts that your ex has washed their hands of.

Although you are not responsible for your partner’s debts, a comfortable existence for you and any kids may depend on your covering bills in your ex’s name. You will most certainly need to know how to deal with debt if you have contracts in joint names, therefore you are legally liable to settle related bills. This will also be the case if you were a joint borrower, a guarantor, director of a family company, or a partner in a business.

If you are left in a panic because you don’t know how to deal with debt that is building, then you may need to seek legal advice from a professional. However, these are some areas you will need to consider and in which you can take some action straight away:

• Bank accounts – Close any joint accounts but make sure that you use the money in them to pay off joint debts.
• Home and other joint loans – Tell your lender what has happened so that new arrangements can be made. Make sure the lender knows where you are now living so you will receive statements and bills to keep on top of them. Put a stop on any facility that allows extra money to be withdrawn on a loan.
• Credit cards – These can cause a lot of trouble so you must pay off any joint credit card accounts and close them. If you can’t clear the debt, then tell your lender what has happened and ask that they do not allow any more transactions on the account.
• Utility bills – Accounts in your own name that now belong to a property you no longer live in should be cancelled or transferred.
• Rent and rental deposit – If you were sharing rented accommodation, then you need to talk with your landlord about getting out of the rental agreement and how you might get your deposit returned.
• Keep copies of letters and relevant documents, including letters of cancellation and related correspondence, and letters between yourself and your ex-partner

Remember to seek legal advice where children, family businesses and property are concerned. Unless you are an expert yourself, always ask a financial counsellor or debt counsellor how to deal with debt, no matter how it occurs.

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Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
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