There are two things you never want to marry together: divorce and credit card debt.

It is not that it's too hard to circumvent these days but the continual hassle from financial creditors can literally drive you insane. All they want is their money and if there's a whisper of divorce on a client's lips they psychomorph from helpful Dr Jekyll to insidious Mr Hyde.

Even the most painful divorce can be alleviated with a court settlement. This should see the credit card debt cleared or at least the responsibility of payment to one or both of the partners. But until that point of clarity occurs many credit card institutions will hound you, and your ex-spouse, seeking payment gratification.

The hard thing about a divorce is that it can become a three-way struggle over the debt. You claim it's not your responsibility and therefore don't make any payments, your ex-spouse claims it's not his problem and likewise refuses to pay and then the card provider threatens to sue both of you.

Everybody becomes anxious about their obligations and responsibilities and it becomes harder to deal with than holding a snake soaked in massage oil.

So, how do you divorce and get rid of the credit card debt?

1. If at all possible don't get a divorce. Go and see a counsellor. Compromise your position. Buy her flowers - just do whatever it takes.
2. If that doesn't work... try and resolve your divorce with an amicable solution as quickly as possible. The quicker the settlement the faster you can get back on with your life
3. Communicate your resolutions Keep your creditors, including your credit card provider, in the communication loop. Tell them when you expect the payments will be made and stick closely to your promises.
4. Trying selling an asset to offset the debt. In any divorce, the assets accumulated by the couple will always need to be split so trying selling the largest, usually your home, first and offset any debts with the proceeds.
5. Separate the debt If the divorce is amicable, or at least not inhospitable, try dividing the credit card debt between two new cards: one for each partner. If multiple credit cards are involved this may become a little tricky but some financial institutions will work this one out for you in order to get your business.

Divorce is no place for credit card debt to loiter so try and be swift with your decision making and life may get back to normal with less aggravation - certainly from your credit card provider anyway.

Posted by Stuart at 6:06 AM | Permalink

Sarah Dinkins of the American Chronicle would have us believe, from her Jan 12 2007 article, that voice recognition credit cards have only just hit the technology frontline. But her article, based on information taken from New Scientist's initial uncovering, doesn't offer any new discoveries to the data NS reported back in 2004.

So, while we're all hearing this information regurgitated ad nauseum my question is "Will this card ever eventuate?"

Beepcard, the pioneers of this technology haven't been heard from in the three years that NS broke the story. In fact, they were quoted in this article as saying,

Los Angeles-based Beepcard, which makes the hardware-driven type, expects a major U.S. credit-card association to roll it out by the first quarter of 2006, says CEO Moshe Cohen.

If the technology is ready to go and banks are quoted as stating that;

Over-the-phone fraud already affects 12% of all banks offering e-payment services, according to the American Bankers Assn.

why has a credit-card association not picked this up and run with it yet?

12 months after Beepcard's prediction there is no visible sign on the financial horizon of this credit card. Has Beepcard not perfected the technology yet? Or, are we to believe that credit-card institutions are making more money than they need and 12% fraudulent activity is an acceptable level?

Posted by Stuart at 5:17 AM | Permalink

What happens to a nation when its private credit debt increases to 147 percent of the country's GDP? Or when the credit card debt reaches a record $37.3 billion, rising at more than $4 billion per year?

Economists are forecasting a recession. And why wouldn't they? Rising fuel costs, interest rate hikes, and another record Christmas spending season are all set to make it harder for families to cope financially in the new year.

In fact, we could see new records being reached this year albeit in personal bankruptcies.

In Peter Switzer's report he lays claim that;

The ratio of household debt to liquid assets rose to a record high of 125.5 per cent in the September quarter.

Because debt levels are so high families will either take the easy way out and file for bankruptcy or they may try to pay their way out and therefore reduce their spending levels.

Either way, it forces a recession...Happy New Year!

Posted by Stuart at 7:34 AM | Permalink