Separating or getting divorced? 6 things you need to know to prevent spiralling into bad credit: Tip 6

What can you do during this difficult time to protect your credit file and avoid getting a bad credit history? Over the next month Fair Go Finance will expose many pitfalls and provide 6 helpful tips to help those entering this difficult time. Our Final tip involves the highly emotional task of now working out the future for your joint children or pet.

LAST Tip to avoid spiralling into bad credit -  Children and or Pets: The hardest part of separation or getting divorced

Hopefully you both always agreed that the happiness and wellbeing of your kids was to be paramount. Your feelings towards your partner may have completely changed, but do not allow this change to affect your relationship with your kids. Sadly, too many parents start using their children as pawns. They try to hurt the other partner by making it difficult for them to see the kids, or by making hurtful and nasty comments about the other parent deliberately in front of the children. Children will always want their parents to stay together – it is a proven fact – after all, it is the ONLY life they know and they want it to stay the same. Deciding on the best living arrangements is definitely a very individual, case by case, situation. Enlist the help of a professional if you think you can’t amicably agree. Relationships Australia is one organisation that offers counseling and assistance in such situations. Financially you both are going to be entering a very new world too. Both of you will feel the pressure of additional expenses. Be honest with yourself and acknowledge that yes, you may be struggling but so is the ex. Take a deep breath and reassure your children and ex-partner that loving and looking after the kids will always be both of your priorities. In this situation, taking very small steps is the best approach. If one partner has moved out, then their first outing with the kids should just be a short visit to softly introduce them into a new second home. Don’t overwhelm them, they are still dealing with very raw emotions, just like you.

But What Happens If One Partner Is Not Willing To Reason?

Despite trying to achieve all 6 steps, if one partner is too bitter or unreasonable, you can still be caught in a dire situation if bills/accounts/child payments are due. Don’t give up and just stick your head in the sand. This will only make the situation worse and definitely cause your credit file to be seriously tarnished with defaults. Do whatever you can to pay those items that will affect your personal credit file.

But what if my credit report does get affected?

This is what you wanted to avoid but unfortunately your credit report is now blemished. Banks and traditional prime lenders will not be willing to lend to you as you will now be perceived as high risk and unlikely to repay. Your only step now is to try and repay any outstanding defaults and at least have them marked as paid. If you cannot afford to do this from your own cash flow/income then you may be able to obtain a bad credit loan. These loans, such as the ones provided by Fair Go Finance, will help you clear any outstanding debts and re-establish yourself as a reformed borrower. Bad credit loan providers like Fair Go Finance give you the opportunity to explain why your credit report became negatively affected. By obtaining a loan with Fair Go Finance you can then prove yourself as a trustworthy borrower, thus leading you to being able to approach a prime lender in the future for a loan.

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