
Are you wondering how you can get out of debt after your divorce? I’m here to help.
Some of my stay-at-home mom readers have recently asked me this question. So, I’ve made it my mission to find some answers.
In today’s article, I’ll share some ways you can free yourself of your post-divorce debts.
To make sure I have the most accurate information for you, I spoke to credit counselors and financial advisors who are experts in their field.
Below are some of the ways they suggested to help you get out of debt after divorce.
Keep reading to find out more.
You may also like How To Afford To Live On Your Own After A Divorce – 17 Helpful Tips

How To Get Out of Debt After Divorce According to Experts
Change your spending style
You need to change your lifestyle if you want to get out of debt after your divorce. This means you’ll have to focus on spending money on your NEEDS rather than your WANTS.
Save your receipt from every purchase you make in a week, then analyze them. Separate each item you purchased into two categories. Nice-to-have and Need-to-have.
The items on your nice-to-have list will have to be trimmed down if you’re going to pay off your debt. That may mean you stop dining out or getting your daily Starbucks coffee.
You may also like 21 Things You Should Stop Buying To Save Money Today!
Consolidate your credit cards and aggressively pay them off
Kimberly Nelson, a certified financial advisor said that high-interest rates on credit cards can make it hard to get out of debt after a divorce.
Consolidating your credit cards may help you get out of debt quickly.
According to Ms. Nelson, CFA, you can do this by moving all your outstanding debt on high-interest credit cards to one credit card with a 0% interest rate.
Ms. Nelson also said, “This rate doesn’t last forever. You must make the minimum payment on it each month or you will lose the zero interest feature and they will begin charging high rates of interest again”.
By moving the debt to the zero-interest card, you can stop the accelerating interest charges so that you have a chance to catch up on the debt that you owe.
You may also like 21 + Ways To Start Over After A Divorce With No Money

Speak to a financial advisor
Financial advisors are trained professionals that can help you take control of your finances.
A good financial advisor can help you get out of debt after divorce.
They can provide you with the best investment strategies, debt management plans, and estate management advice.
You may also like Divorce and Debt: Experts Answer Your Top 5 Divorce Questions
Speak to a credit counselor
A credit counselor can also help you get out of debt after a divorce. They will give you advice on managing your money and debts and helping you develop a budget.
They will also help you get a copy of your credit report and scores, and organize a “debt management plan” to pay down your debt.
You can find a credit counselor through the Financial Counseling Association of America. They’re a nonprofit organization that may be able to offer you a free consultation.
You may also like: How Can A Stay-at-Home Mom Afford A Divorce? Experts Answer Your Divorce Questions

Learn to budget and stick with It
If you want to aggressively pay off your debt after your divorce, then you need to learn to budget. As mentioned before, you’ll need to stop buying those “nice to have” things for a while.
Make a list of things you need to spend money on each month. This is called a budget category
Examples include grocery, utilities, and car payments. Make sure you include your debts as part of that category as well. To get a complete list of budget categories, read this article 91 + Cash Envelope Category Ideas + Free Printable
91+ List of Cash Envelope Categories (Free printable)

Use the snowball technique to pay off debt
After you’ve made your budget categories, divide up your paycheck in such a way that all your NEEDS are paid for first. It’s only after fulfilling your needs that you should focus on your debt for that month.
If you have a lot of outstanding debt after your divorce, you can try the snowball technique to help pay them off.
In simple terms, the snowball method means putting all your resources into paying off your smallest debt first. When that is done, you move that resource into paying off the next debt.
You’ll then continue to pay each small debt off until eventually all your debt is paid off (source)
Try the avalanche technique to pay off debts
Financial advisor A.B. Ridgeway says using the avalanche technique can help you pay off debt quicker as well.
According to A.B. Ridgeway, “The avalanche technique focuses on reducing the amount of interest charged on your balance”.
This basically means you focus on paying off the debt with the highest interest rate first. Once that debt is paid, you then focus on paying the debt with the next highest interest rate.
It’s the opposite of the snowball technique because you’re paying your debts from largest to smallest. You continue doing this until all your debts are paid off.
Both the snowball and avalanche methods are great ways to get out of debt after a divorce.
Weekly Expense Tracker (Free printable)

Apply for a hardship program with a credit card company
Some credit card companies offer hardship programs that could help you pay off debt after a divorce
Mr. Ridgeway, a certified financial advisor says “Sometimes, in extreme circumstances, some credit card companies have hardship programs that can suspend interest rates for a set amount of time. If approved, this will give you an opportunity to pay down the principle without adding additional interest to the balance”.
To learn more about hardship credit card plans check here.
Apply for a mortgage forbearance
If you are having a hard time paying your mortgage, you may be eligible for a mortgage forbearance.
This is a program offered by most lenders that allow you to pause or reduce your mortgage payments for a limited time while you build back your finances.
Check the consumer finance protection bureau for more details.
According to the Consumer Finance Protection Bureau, you could be eligible for a mortgage forbearance if you have a federally-backed mortgage, and are currently experiencing hardship (directly or indirectly) related to the Covid-19 pandemic.
This is definitely something you should look into more if you’re trying to get out of debt after divorce.

Set up an emergency fund
An emergency fund is a little next egg you set aside to use when an emergency strikes.
Examples of emergencies that can set you back financially are accidents, a medical claim that insurance doesn’t cover, etc.
Having an emergency fund will prevent you from sliding further into debt when you need money suddenly. Your emergency fund should be built into your budget strategy each month.
Check out my article on how to use the cash envelope system to begin creating your budget today.
Consider filing for bankruptcy
If after you’ve tried the above suggestions and you’re still unable to pay down your debts, then consider filing for bankruptcy.
You need to speak with a bankruptcy lawyer who can advise you on how to go through the process if you qualify.
Chapter 7 bankruptcy is the most common type, and it can help you erase your credit card debt, unsecured loans, and medical debt.
Note that filing for bankruptcy will negatively affect your credit score for about 10 years. It also won’t erase debt like child support payments, student loans, and taxes that you owe (source).
If you’re struggling to get out of debt after a divorce, then filing for bankruptcy may be the way to go.

Get a second job
If you’ve started budgeting and living within your means but you’re still struggling financially, then it may be time for a second job.
Sometimes all we need is a little boost in income to help us get out of debt.
Depending on your lifestyle, how many kids you have, and how demanding your current job is, getting a second job might not be so easy.
Instead of getting a full-blown job, you could try a side hustle.
If you’re a stay-at-home mom, check out my article on 12 Best Side Jobs For Stay-at-Home Moms. If you need to revamp your resume to secure a second job, then check out how to create a SAHM resume for some help.
Try consolidating your debt
Debt consolidation means combining all the debt you owe into one. For example, Instead of making multiple payments to different people, you’ll be making one monthly payment to the bank or credit union where your debt is consolidated (source).
This could help reduce your monthly payments overall. Make sure to do your research before using this option to pay off your debt after a divorce.

FAQs About Getting Out of Debt After A Divorce
Is it better to pay off my debt before getting a divorce? Why or why not
Kimberly Nelson, a certified financial advisor said “It is best to pay off any joint debt, and absolutely close any and all lines of joint credit prior to a divorce”.
According to Ms. Nelsen, there are several reasons.
The first reason is, if the debt is in both names, you are BOTH still held liable by the creditor after the divorce is final.
If your ex was assigned part of the debt and refuses to pay, many creditor agreements supersede divorce decrees and the creditor could come after either party to settle the debt, not just the party that was assigned the debt by the judge.
The second reason is that many divorce attorneys may choose to drag out the divorce proceedings longer when they know there are assets available for billing.
“Paying down debt decreases the amount of money available for lawyers to bill, thus driving everyone involved toward a settlement versus a trial”. Says Ms. Nelson.
The third reason you should pay off debt before a divorce is that holding onto debt through the divorce and beyond could affect your credit negatively at a time when you are starting life over.
If you have a high amount of debt, it is going to be harder to rent an apartment, refinance a mortgage into your name only, lease a car, etc.

Final thoughts on getting out of debt after divorce
Getting out of debt after a divorce can be very stressful, but there are so many ways to succeed. Take all the resources I have provided for you today and do more research on each one.
Create a debt-free divorce plan for yourself. Don’t forget to speak to experts like financial advisers and credit counselors to help you on your journey.