Divorce now third biggest contributor to debt
Divorce is now the third biggest contributor to debt in the UK. As well as this, it is also becoming increasingly more common, with 61% of divorcees falling into debt as a result of the fees attached to it.
In 2020, the average cost of a divorce stands in excess of £15,000; this was £12,500 only six years ago. This was no small sum six years ago but gathering these funds now is far from easy. Taking all of these figures into account, it cannot be stated enough that being prepared for the financial burden of a divorce is vital.
One of the most common causes for debts being accrued as a result a divorce process is that people are more likely to pay for fees on credit – it should then be no surprise that the second biggest contributor to debt in the UK is credit card interest (the first being housing costs).
An increase in credit card payments is understandable, of course; most people will look to get through their divorce process as swiftly as possible and, considering the emotional toll it can take, spending on credit can stave off any immediate expenses and offer a sense of breathing space.
That £15,000 doesn’t just come from solicitors fees and financial orders, though; there are all of the costs that come after it that are regularly unaccounted for. Finding a new place to live, buying new furniture, potentially adjusting to parenthood on a single income, that list goes on. Divorces can very quickly lead to debt which can result in damage to your credit score which can then hurt your chances of obtaining a mortgage later on. That’s why the overall cost can get so high and why preparing for these expenses ahead of time is so important.
The most important thing a divorcing couple can do is to keep things amicable. Deciding things together (logically and fairly) will help to avoid conflict and a drawn-out process and, more importantly, can end up saving you money.
One of the quickest and most effective moves a divorcing couple can make is taking the decision to sell their home to a house buying service, essentially tackling the top three contributors to debt in the UK; housing, credit and relationship breakdowns.
Property buyers can help to ensure that funds are quickly freed up so both parties are sufficiently prepared for their lives after a divorce. By selling their property, each party can be sure to receive a sizable cash amount that will go a long way to not just cover any legal fees involved in a divorce but a lot of the additional costs that come after.
National Property Trade are specialists in selling houses quickly and have a wealth of experience in helping people looking to sell as a result of an impending divorce.