Debt Consolidation For Married Couples
When you have financial products that are tied with a significant other, their financial management also reflects on you. Therefore, if they miss payments on credit cards or loans, it can lower your credit score.
This is the case even if you don’t have credit with your partner. Just a joint bank account can be enough for credit agencies to lower your credit rating if your partner is mismanaging their financial obligations.
Seek joint debt consolidation loans for resolution
If you find yourself in this position, then you might need to seek joint debt consolidation loans in order to resolve the issue. If you can help your partner to pay off their debts, then you can also improve your credit score.
When the debt has been paid off, you should find that you can apply for a loan or credit card and are more likely to be accepted.
Can you just untie your financial ties with a partner?
If you feel that the simple solution is to untie yourself from a partner to remove the negative impact on your credit score, then you need to think again. While you should untie yourself from accounts that are joint-owned when no longer financially tied with a partner, severing ties before the debt has been paid might not resolve your current issue.
It all depends on the financial product your partner has taken out. If they had one based on your joint financial product (i.e. current account), you might be jointly liable for the debt anyway. If you move away at this point, it might still harm your credit score.
And if you want to improve your credit score, it might be wise to make payments to show you’re a responsible borrower first. After the debt has been cleared, you can always remove financial ties afterwards.
How does a joint debt consolidation loan work?
A debt consolidation loan is the perfect solution for those who are struggling to pay off debts owed to numerous different lenders. What we do is that we calculate the remaining debt across all lenders and then pay off all the debt simultaneously.
All you have to do then is to repay the debt to us in one monthly fee. This is a great option because it makes it more cost-effective and easier to manage. The debts that are often covered by a debt consolidation loan include large overdrafts, high-interest loans, credit cards or investments you’ve made in high-value items (i.e. sofas, kitchens, bathrooms).