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Is a divorce loan a smart money move?

| Jul 24, 2020 | Divorce |

Most people realize that getting a divorce will cost them money. However, there are some expenses they may not be expecting or there may be a change to their income level once the divorce is finalized. For some people here in Michigan, it might make sense to apply for a loan in order to cover necessary costs. Experts have advice for anyone considering this option to help them handle their divorce.

If a person expects that his or her divorce may be a contentious one, getting a divorce loan may be a good idea. A personal loan often has lower interest rates than what one may get with a credit card, giving that person the ability to make monthly, manageable payments. That said, getting a loan during a divorce may not be easy and those who aren’t sure they’ll be able to repay it may want to avoid doing so. Some people may want to get a divorce loan as a way to help them build their own credit. Many people share a credit history with their spouse and a divorce can change that.

Even if a person has the ability to get a divorce loan, it may not be the only available option, or even the best one. Some people may have a better result by getting a home equity loan, borrowing from loved ones or even using money allocated for retirement. Each person will have to look at his or her own individual circumstances to determine what the best course of action may be.

In any case, those considering divorce here in Michigan may want to work with different types of professionals to ensure the best potential outcome. A financial advisor, counselor and attorney can all assist a person with different facets of divorce. A family law attorney in particular can be a valuable asset for those looking to get started on the right foot.

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