Dear Dave,
My husband and I are getting a divorce, and everything will be final in less than a month. I haven�t worked outside the home in a few years, but according to the terms of the divorce I�ll receive $75,000 in cash on the day the divorce is finalized. I also have about $5,000 in debt on a credit card I am responsible for paying. Other than that, I have no debt. Can you give me some advice for moving forward in my life?
Starla
Dear Starla,
I�m truly sorry to hear you�re going through this. If you�re not already connected to a good church, I hope you�ll consider finding one. Having caring people of faith around you in times like this can help a lot.
The credit card debt is a small part of your financial picture right now. Still, my advice is to go ahead and pay it off as soon as you receive the settlement money. That way, you�ll be completely debt-free and still have $70,000 in the bank.
There�s a little bit of a catch, though. You�ll need to live for a while like that money isn�t there. Use just enough to get yourself settled somewhere else, if that�s a consideration, and then start looking for a job so you can eat and pay the utilities. There are tons of places hiring right now, and the money�s decent, so it shouldn�t be too hard to start generating a regular income soon.
If you�ll do this, that big chunk of cash will still be sitting there a year from now when the pain of the divorce has lessened a bit. At that point, you�ll be stronger and more emotionally and mentally ready to think about the future and make real plans.
And if you haven�t already, cut up that credit card and close the account. The last thing you need right now is an avenue to more debt. God bless you, Starla.
� Dave
Image by Armando Orozco
