If both of you are authorized users, you and your spouse have equal legal responsibility to clear off the outstanding balances. Hence, there is a need for you and your spouse to communicate and solve the problems together. You are reminded not to ignore the debt because your credit score will be badly affected.

Once you and your spouse have decided to divide the debt equally and both of you have informed your creditor about the arrangement, what must you do next? In general, the creditor will divide the debt and place it into 2 new individual credit accounts, one on your spouse’s name and one on your name. You should pay off as much debt as possible and dig yourself out of debt as soon as possible.

Sometimes, life is full of uncertainties and challenges. Your life becomes more difficult when you are currently jobless. Being an unemployed, how do you pay off your credit card debt?

Here are some possible financial solutions you can take:

Option 1: Obtain friendly loan

You can look for financial support from your family members, your relatives or your friends. When you are facing financial hardship, it will be ideal if you can obtain friendly loan from someone you know because you may not be required to pay for interest. At the same time, you will have a more flexible repayment term. You don’t need to worry so much if you can’t find a job within a short period.

Option 2: Negotiate with your creditor

You may consider settling your debt with your card provider on your own. Write in a settlement letter by explaining your current financial situation and propose to settle your debt at a reduced amount. You can do so if you have some fund in your saving account.

Option 3: Sell off some valuable items to raise cash

Settling debt may affect your credit rating. In order to prevent this, you can consider selling off your jewelries, electronic equipments, luxurious items, car, etc to raise cash. Utilize the cash to pay off your outstanding balance.

Option 4: Utilize your tax refund

Being an unemployed, you may be entitled for tax refund. You are suggested to make good use of your tax refund to pay back your credit card debt.

Option 5: Get personal loan

Since you are currently unemployed, obtaining a new loan seems to be a bit difficult unless you own fixed assets. If you have a house, you may get a low interest secured loan by using your house as collateral.

For more info about getting a personal loan for people with bad credit – here.

Seriously speaking, being a divorcee and an unemployed can be very stressful and depressing. But you need to be positive. It is not a big deal. Worse comes to worst, you can file bankruptcy in order to become debt free. Turn into a new leaf and rebuild your finances with the right strategy.