Secret debt; ever tried to keep it a hidden? If you have had success, then you are one of the lucky ones who didn’t have a major problem arise. Hiding cash advances or credit card debt from a spouse will certainly cause a bone of contention if a debt collector is the one to let the cat out of the bag.
A cash advance works with a bank account.
If you have your own bank account, then your spouse would remain unaware of any cash advance loan. When you share a bank account, the loan is still attainable as long as the applicant has direct deposit income going into that account. The problem arises when a spouse sees the statement. The statement will display the transactions.
Credit cards in your name only? There is lots of debt which could be hidden there as well. It would help if the person with the debt is in charge of paying the household bills. All that deception is one problem, but what happens if you lose your job or become disabled? What happens to that secret debt? Will it affect shared accounts?
Once debt collectors begin calling, it will be difficult to continue hiding the debt. If at this point your spouse still does not know about the debt which has now gone bad, it may be a great time to disclose the secret.
Collectors will continue to call in the effort to receive some sort of payment. If the debt is in your name only, your spouse will not be saved if you have shared accounts. Is the home mortgage in both of your names? How about the savings? If you cannot settle the debt through negotiations with the creditors or collectors, you may want to seek out the assistance of a credit counselor. If you haven’t received a request to appear before a judge yet, you have time to find a solution. Once a judgment is made, liens can be placed on homes or wages could be garnished. Can you afford to bring home even less money? A lien on your home will collect unpaid debt once the home is sold.
Why fall back into cash advance or credit card debt?
Once you take care of the initial debt problem, both spouses will still have to work at adjusting the cost of living with less income due to job loss or a disability. People surviving on disability income have a difficult time making ends meet, especially if the loss in income is a sudden change. The last thing anyone would want to see happen is to solve one debt crisis and then overspend your way into another problem through too many cash advances or adding credit card debt.
Debt is tough for many situations. Secret debt adds another whole layer of problems. Finances are a team effort for spouses. One person may pay the bills, but both should know the status of the accounts. Any shared accounts will be negatively affected when individual accounts run into trouble. Get together with a financial adviser if you want to set the finances in the most productive manner for your given financial situation.
