Financing Your Divorce
Should I Consider Financing my Divorce?
It's no secret that divorce is expensive and unpredictable. There are some things you can do to keep your divorce costs down. However, some of the costs of divorce arise unexpectedly and some are truly outside of your control. If you've done everything you can to keep your divorce costs down and you are still concerned about paying for your divorce, there may be another option - financing your divorce. Financing your divorce could allow you to borrow money to help pay for your divorce while giving you the ability to pay the money back over time. It's important to note that financing your divorce is not for everyone. As always, there are pros/cons with borrowing money. Typically, when people consider financing their divorce, they consider whether to use a personal loan or a credit card. There are definite pros/cons to both options that you should carefully consider.
Financing Divorce: Loans vs. Credit Cards
The two most common ways that people finance their divorce is through personal loans or credit cards. If you qualify for a personal loan, generally speaking, you will receive a fixed amount of money upfront and you will be expected to make smaller monthly payments over time to pay off that loan. For a personal loan, you will be required to make monthly interest payments as well. Qualifying for a personal loan can be a bit more difficult than qualifying for a credit card. However, a personal loan is often easier to budget with. The smaller fixed monthly payments that you would make on a personal loan are predictable and somewhat easier to work into a budget.
Conversely, a credit card does not give you a lump sum upfront. Generally speaking, a credit card will allow you spend up to a certain limit. However, unlike a personal loan, if you choose to carry a balance from month to month on your credit card, you will be charged interest on that balance. It's worth noting that the interest rate for a credit card is typically a good bit higher than the interest rate for a personal loan. As a result, you could end up paying more overall if you choose to use a credit card.
How to Finance your Divorce
Can I pay for my Divorce in Installments?
Yes! You have the ability to use Affirm through Law Pay to pay for your divorce in smaller payments over time. Affirm allows you to finance your legal costs by giving you the ability to pay monthly. This gives you control, convenience, and increased purchasing power should you need it. Affirm gives you the ability to choose from a few easy monthly payment options that work best for your particular budget. You will know exactly what your monthly payment will be up front. No surprises. Applying is quick and easy, Affirm will ask a few questions and get you a decision in real time. Finally, there's also no penalty for paying early.
How do I get Started with Financing my Divorce?
Getting started is simple. Click here to be taken to Affirm's quick and easy divorce financing application. You will begin by entering in the loan amount, your name and your email address. You can rest easy knowing that checking your eligibility will NOT affect your credit. Typically, you will enter in a few pieces of information before being given a real time decision. There is no lengthy waiting period. Next, you will be given a breakout which typically shows 3 payment options, one for a 6-month payment term, one for 12 months, and one for 24 months. Each option will have the monthly payment amount and interest rates listed for you to review. Simply select the term and payment amount that best meets your individual needs. Once you select a plan, making payments is easy. You can elect to get text or email reminders when the payment is coming up, and you can easily make payments on affirm.com or in the affirm mobile app.
The Pro/Cons of Financing Your Divorce
Even if you qualify, financing a divorce is not for everyone. The best way to determine if financing your divorce is right for you is to consider the pros/cons. While each financing service is different, here is a list of general pros and cons.
Pros
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Makes divorce more affordable
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Make smaller monthly payments
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Pay off divorce slowly over time
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Can get lump sum upfront
Cons
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Must qualify for loan
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Missed payments impact credit score
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Must pay interest
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Amount of loan is fixed, can't get more
Other Options for Financing a Divorce
Aside from using Affirm through LawPay above, there are several other options for financing your divorce through a personal loan. The best way to decide whether or not financing your divorce through a personal loan is right for you is to review each of these options and their qualification requirements. Below, we have put together a short list of the most commonly used personal loan options for financing divorces.
LightStream
Upstart
Upgrade
SoFi
