Debt Consolidation After Divorce

Debt consolidation after divorce

The Covid-19 pandemic has led to an increase in the number of couples contemplating divorce. UK law firms are reporting that the number of enquiries they have received about their divorce services has increased by over 40 per cent over the past few months. Being forced to spend large amounts of time with partners has brought the problems in many faltering relationships to the surface.

Complicated finances sometimes keep people in bad relationships

Married couples often have complicated financial arrangements, and money is one of the most common causes of arguments. When couples divorce, unravelling those finances can be difficult. Fear of the difficulties involved can often make people stay in unhealthy relationships longer than they otherwise would. Many people wonder if they might become liable for debts they can’t afford on a single salary.

Joint debts

When a loan is taken out in joint names, both parties are responsible for ensuring it gets paid. So if one partner can’t or won’t pay, the other partner becomes 100% responsible. Even when those partners divorce, they are still both responsible for the payment of the loan. If your partner earns less than you, you may be concerned that should they default on their share of the payment, you would have to pay the entire amount. Joint debt consolidation loans help couples simplify their debts and find a way forward.

Individual loans

If you or your partner took out loans individually, then the other partner has no liability. If you have a number of different loans and are juggling payments, then a debt consolidation loan can make life easier with one simple monthly payment.

Consolidate your debts before beginning divorce proceedings

Couples who have decided to separate should take a hard look at their shared finances. The amount owed in loans and other shared debts should be added up, then divided. Each partner could then apply for an individual debt consolidation loan to pay their share of the debts. This will reduce the monthly payment, and simplify your finances.

A clean start

Debt consolidation loans make real sense for separating couples. They help pay off joint debts, giving each partner a clean break. They keep things simple when both parties already have a lot to think about, reducing outgoings and allowing the people involved to move forward.

If you’re a homeowner and business owner, get in touch with the experts at Debt Consolidation Loans today for more information about how a debt consolidation loan can benefit you.

If you think a Debt Consolidation Loan is right for you, get in touch or call on 0333 577 5626 to improve your financial situation with one easy monthly repayment.