Pay debt or finish school before divorce?

Question

I am fairly certain my husband will be leaving me at some point this year. We are working on our marriage, but just in case, I am getting myself prepared as well as I can. Here is my question - I have $14,000 on my own credit cards right now and no college degree. Which would be more important to have accomplished this year if the marriage fails - my debt paid off or at least my associates degree under my belt? I can pay cash for my classes needed, but that would mean nothing but minimum payments on my credit cards.

Looks like I left out information that could have helped with the replies. I should clarify that I am not "just starting out", I guess you would call it. I'm 35 with a great job. If it makes any difference at all (I really don't know) the cards are in my name only and the debt incurred has been from travel, not household goods. I work full-time and have been paying $1,000 per month on my credit cards. Due to my income, I do not qualify for student loans or grants. If I went back to school I would need most of that money to pay for my classes. I have enough college credits to get my associates by the end of the year, but not my bachelors. (That is what I am focused on - what I can accomplish in one year) I would give anything to have not incurred the debt and to have stayed in school, (and to have a stable marriage!) but I can only look towards the future now.

Answer 1

ok, well it took me 8 years to get that famous bachelors degree that everyone wants so bad. The same degree that i don't use, the one that is collecting dust in the closet. I'm not saying that it's not important, because it did give me leverage when i needed a better job, of course i am an accountant with an art degree, so i make good money and all it did was get my foot basically in the door. but according to your situation, i feel that it would be best for you to pay the credit cards at this satge in your life. since you already have a good job with money, it would be more important to pay off all those credit cards while you have a crutch, mean while if you decide to go back to school after your debt is paid down, then you can go part time at night, which is what i did, and i have no school loans to pay mean while the credit card debt just kept going down and down because my crutch at the time was living at home with my father. Now, i am thinking that since i am married and on my own if i had your situation, i would pay the cc first because right now my husbands got my back and those creditors aren't very forgiving, where if you think about it, what is the real urgency of getting this degree since you already have a great job, all it will do is give you leverage right, but not take anything away from you, where if you can't pay those cards they'll repossess your shi.. good luck. hope i helped.

Answer 2

Not really enough information.

Debt is typically marital debt. So if that 14K of debt was created during the marriage, and you can prove that it was used for household expenses, then most likely it will be split between you two in some fashion.

However, if you had that debt BEFORE the marriage, then you will probably get it all.

The next thing to consider are his debts. You are probably not the only one with credit cards, so his debts may also be split between the two of you, again depending on when it was taken on. If he had it before, then you shouldn't have to pay it in most states.

Your education cannot be split, so I would certainly focus on that as well as really working on your marriage.

Financially speaking, divorce is often devestating.

If you are really working on your marriage, a solid financial foundation will probably take a lot of stress of the marriage.

If you are just looking to get out, paying off the debt really doesn't help you if it's marital debt.

The laws differ in each state, but I believe the above to be a reasonable starting point to examine your options.

Some excellent points are made about the amount of interest you will pay on 14K of debt, as well as what to reasonably expect the increase in your earning power from a two year associates degree.

So the things to consider are, in no particular order:

Who gets what debt if we divorce?
How much interest would I pay or save based on tuition or debt payments.
Can I refinance any of this debt onto low or zero interest cards for the next few years so it stops growing?
Can I change my spending habits so I don't spend more than I make.
What is a realistic return on my education investment.
Can I borrow very low interest money for school and keep my current income to cover higher interest credit card debt?

Answer 3

Pay off that debt. Then after the divorce you can talk to the Financial aid office of your school. You will be sure to qualify for grants and other low interest loans. Perhaps find an employer that will help you get your degree.

Credit Card debt is a monster, tackle it. Took me almost 8 years to finally see the light at the end of the tunnel.

Answer 4

Definitely pay off your debts. You may soon have to look after yourself financially and you should put yourself in the best financial position now. Get a stable situation with regards to your home life and a job, then study for your degree. I think having a large amount of debt while studying and also going through a separation would also put a lot of pressure on you. That's what I would do anyway. Obviously you need to decide how you would feel in each situation.

Answer 5

Pay off your debt! Take one class at a time until you get it paid off...then when your debt is gone or reduced, you can up the class hours you can take. Better yet, see about getting a Pell Grant or something similar so you don't have to pay much if any at all for school.
But that $14,000 can take a lifetime to pay off making only minimum payments, and the extra interest it will cost you could pay for your education!!

Answer 6

Deal with the debt first. If it is your personal debt, he is under no obligation to help you with it after the divorce. Unfortunately, an associates degree will probably only earn you a dollar, maybe two dollars, more an hour if you are lucky. You will pay way, way more than that in interest alone if you drag out the credit card debt. Deal with the debt as soon as you can or it will haunt you forever.

Answer 7

Your degree would mean more than paying off the debts. If you do get divorced, you never know what the judge will make him pay. He may get stuck with the whole 14K... Also after he leaves you may not have the time or money to get your education, since you may have to work more by then. Get your degree, no one can take that from you... and you will be able to land a better paying job with a degree.

Answer 8

Pay the debt then go to school. If you go to school with a lot of debt it will make it harder for you to focus on a degree. Besides in all honesty an AA degree is not enough. Go for the bachelors or if need be go to a trade school. But that debt will always be there and you will make excuses why you cant make it school.

Answer 9

with that debt, i wonder how you would get a student loan. that credit card debt could be his problem also since you two are married, go to school, minimum payments is better then nothing, by the time you graduate and get a decent job, you should be able to pay it off in a few instalments. good luck, sorry for your trouble, and STOP SPENDING

Answer 10

I would say go to school so that you can get a job where you can support yourself when he leaves. So what if you have no debt--but can't find a job-- you will still be penniless. If you go to school, you can get a job where you can support yourself and pay your debt. But you better be getting a good degree--jobs are hard to find even with a degree. But you probably won't find anything at all without it.