How can I improve my credit score before divorce with $29k in debt?

A

AlcRicks92

New Member
I am 32 years old. I am married. I am looking to divorce soon. My credit score is in the low 600s. I have $25k in credit card debt. I have a $4k medical bill in collection. I have $33k in student loans. I make $90K per year salaried. I have $50k in my 401K.

I am consideirng a debt consolidation loan to pay off the medical bill and credit card debt. Or should I withdraw from my 401k? My goal is to increase my credit score so I can secure housing when my marriage ends. Any advice is helpful. Thank you.
 
Don’t borrow from your 401(k) that money is for your future.

Here are practical steps:

Get a cheap used car.
Rent a studio apartment or a room.
Pick up an extra job or work extra hours.
Sell what you don’t need.
Pay off debt from smallest to largest, while paying the minimum on everything else.
Call your creditors and credit card companies to ask about debt settlement options.
 
Honestly, if I were you, I'd find a house and rent just a room for yourself since you're divorcing. Build wealth, pay off all debt a single room is cheap and grab a 2 3k old reliable car. There's no secret to it, just time. With 90k a year, assuming no child support, you can clear most, if not all, of the debt in year one, but you'll have to live strict and boring while you do it.
 
In this situation, tbh, I'd consult a lawyer first, bc you need to find out how a divorce will affect your finances. Also, I'd go through your stuff. If anything you have is exclusively yours and isn't essential, sell it for cash and stash that cash somewhere safe not a financial institution, and not somewhere it's likely to get stolen. You'll need a starter fund once the divorce is final.
 
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