Simple Divorce Advice

Whether your divorce was {amicable|friendly} or not, it’s always hard to think about facing life afterwards. It’s an {extremely|exceedingly} stressful time, and top of all the emotional upheaval, you may have life on a single income to {consider|think}.

If you’ve been used to having financial support from your spouse, it may come as a bit of a surprise to find your money doesn’t go as far as it used to. If you haven’t done so before, setting a household budget can be a great help as it will {enable|allow} you to see where your money is going, and help you to {adjust|regulate} to a reduced income.

Know your financial situation

Once all the {assets|possessions} from the divorce have been divided, and the dust has settled, you’ll need to take stock of your new situation. Make a {list|record} of all your outgoings; bills, fuel costs etc, and all your income (include any child support payments here). You should end up with two figures – hopefully the incomings will be more than the outgoings, but if not, there are things you can do to {reduce|decrease} your outgoing amount.

Ease any existing debts

If you are left with debts, it’s worth contacting the lender/s to see if you can {negotiate|discuss} a lower repayment {amount|sum}. This may mean extending the term of the debt, but it will make things easier in the transition period, and you can raise the amount again at a later date.

You may also be able to {reduce|decrease} any credit card balances you have. If the interest rate you’re paying is quite high, consider moving the balance to a new card. Compare balance transfer credit cards to see if you can find one with a lower interest rate. {Dedicated|devoted} balance transfer cards have longer 0% interest periods, so you can save {quite|fairly} a lot of money during this time.

If your house is mortgaged and {now|currently} in your name, consider remortaging to free up some of the equity or {switch|change} to a lower rate. You could not only save money each month on repayments but you may also have {spare|extra} cash to clear off any overhanging debts. However, this is more {applicable|appropriate} to homeowners with a large sum left on their mortgage – if you’ve nearly paid it off then you don’t want to start all over again!

Find better deals on household bills

When {everything|all} else is changing in your life, you might be tempted to keep some things the same {purely|simply} for the security. But if this means paying more on your bills, then it’s worth making a little {extra|further} effort to look around for better deals. If you don’t have children, or are moving to a smaller property, your gas and electricity {consumption|use} may decrease, so have a look at other suppliers in your area to see if {any|one} of them offer cheaper tariffs. Likewise, your phone and internet services may not suit your new needs, {especially|particularly} if your ex was a heavier phone or internet user than you are. {Downgrading|reducing} to a smaller package with lower download limits can save you up to £10 per month depending on the {provider|source}.

Shopping

Grocery shopping is an {ideal|perfect} cost-cutting area, especially if you’re now living alone. When you’re in the supermarket, try to go for special offers, multipacks or foods you can divide up and freeze {individually|independently}. But don’t buy foods which are on sale {purely|only} because they’re on sale…if you wouldn’t have bought it in the first place then it’s not {really|actually} saving money. And keep an eye out for coupons for your favourite foods – they really can save you money on your weekly shop.

Going out

It’s {important|imperative} to maintain a social life after a divorce, and it needn’t cost the earth. If you’d {normally|usually} go out with a group of friends for dinner and a movie, why not take it in turns to visit each other’s houses for a home-cooked meal and a rental? Or if pubs and clubs are your thing, get a few nearby friends to buy a couple of bottles of alcohol each, keep it at their own house, then do a ‘pub crawl’ from one house to another. You’ll be {surprised|astonished} how much fun you have and, more importantly, how much money you’ll save!

Originally posted: MANAGING A POST-DIVORCE BUDGET

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