5 Ways To Fix Finances Post Divorce

4.   Don’t allow any of your bills to be turned over to a collections agency due to lack of payment.
This includes utility bills, cellular phone bills and medical bills. Having a collections account listed on your credit report causes a significant drop in your credit score. A collections account will remain on your credit report even if the bill is ultimately paid in full, unless you negotiate with the creditor to have the negative information removed. Many people refuse to pay medical bills that they believe their health insurance company was supposed to cover. Instead of avoiding these bills and allowing them to be turned over to a collections agency, set up a payment plan with the doctor or hospital while you negotiate with your health insurance provider.         

5.  Have any erroneous or out-of-date information on your credit reports removed.
Most trade lines will remain on your credit report for seven years. After that period, you can have the information removed by contacting the credit bureaus. If you notice errors on your credit report, contact the creditor or lender, plus file a dispute with the credit bureaus.                     

Once you establish a line of credit, get approved for a loan, or pursue some other type of financing, it’s essential that you be responsible and adhere to your agreement with the creditor or lender. If, for whatever reason, you can’t meet your month-to-month obligations, contact your creditors immediately, explain the situation, and negotiate an amicable solution. Don’t simply ignore the bills and assume they’ll go away with no negative repercussions. Your lenders will generally be willing to work with you if you experience a sudden loss of income, illness, or some other type of emergency.