RE: debt treatment of women credit card.?

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My friend (who is frugal but not cheap!) Just found out that his wife accumulated credit card debt of 60k-100k. His house is paid as his cars, his perfect credit. I do not think they have bad credit again. I think most if not all cards are in his name. He has over 25k in cash and maybe 25K in his control. He wants to fix the problem of credit card to them before divorce, he has a good hospital board. If you have experience with this, what are her best options? His wife is a retired teacher. I fear that if he mortgages his house and his name connected to the mortgage again, she can get into more trouble. They wouldnt do this on purpose to be mean, but somehow I feel when you get out of trouble, you are not a simple lesson. I think it would be better if he could pay half of their debt and it goes back to work to pay the rest (after obtaining a loan in their name for it) Please help! If you are under 63 years.

4 Comments
  1. Reply
    Dav
    May 4, 2011 at 3:27 am

    You have very valid concerns. First she should go for counseling.

  2. Reply
    Crystal T
    May 4, 2011 at 4:24 am

    Even if the debt is only in her name, he is her spouse and the debt is going to affect him as well. If he wants to buy anything were his wife’s income info is needed, it may hurt his chances of getting said item. If something were to happen to her, he would be responsible for assuming 100% of her credit card payments. So I see why your friend would want to help her pay it off. However, if he is planning on divorcing her, her impulsive behavior, could work in his favor during divorce proceedings. Also, it sounds like her behavior, from a psychiatric standpoint is troubling. She needs counseling, not just financial counseling, but psychological. Usually spending of that type is caused by underlying issues.

  3. Reply
    CanadianBlondie
    May 4, 2011 at 5:13 am

    He should consult a good family law lawyer. I’m not sure, but in the event of a divorce, it might be possible that he’d have to split the debts as well as the assets.

    Edit
    I found a reference that supports the above assumption:
    http://www.doityourself.com/stry/divorcedebts

    I don’t recommend refinancing the house at this time; deal with it all with the divorce. He should focus on his own situation rather than trying to teach her “lessons”.

  4. Reply
    DaMan
    May 4, 2011 at 5:37 am

    Easy.

    If you are going through all of this effort to reorganize her debt JUST SO you can avoid the “hot mess” that you KNOW will take place when the divorce happens — YOU SHOULD GET HER on a DEBT DIET for 24 – 36 months.

    True. Get her to downsize her debt from 100K to 50K and then divorce her, but honestly — divorcing her at 63 doesn’t sound like the most intelligent move either.

    She needs to do some consulting work for a needy Board of Education who needs well-trained retired teachers to go back to the classroom and handle the bay-bays of the millennium.

    I heard the Boards pay retired teachers goo-gobs of money to come out of retirement.

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