A joint debt consolidation loan can help you bring all of your bad debt together into one payment and one loan with one monthly payment. If tackling your bad debt is something that you’d like to do as a household, with your spouse, partner or close family member, you can combine all debts in one place and then simply make shared monthly payments.   

Joint Loans for Debt Consolidation

Joint Debt Consolidation Loans – If you’ve got more than one debt hanging over your head, you’re not alone.

It is extremely common for people to have balances on multiple credit cards, store cards, or personal loans.

Debt isn’t all bad, but it can turn sour if you have so many repayments to keep on top of that you miss payments. A debt consolidation loan solves this problem by combining all of your debts into one manageable monthly payment. Simple!

We offer the best consolidation loans 2020 to tackle your finance hassle smoothly.

What is a joint loan?

If you have a partner, close family member or friend who is happy to apply for a loan with you, it could be the best way to solve the problem of a poor credit score.

By combining your situations, credit history, income and circumstances, you’ll stand a better chance of gaining a debt consolidation loan if other lenders have refused to give you them in your sole name.

Applications are assessed on both your credit scores and incomes. If accepted, you will then be required to sign the agreement together.

A joint debt consolidation loan means that you can join forces with your partner, spouse, close family member or friends and take on your bad debts together. By combining your income, debts and credit scores, you may have a better chance at reducing your bad debts and improving your credit ratings.

You can apply for a debt consolidation loan with a joint application, which may offer you a better opportunity of being accepted if you’ve had trouble in the past. If your application is accepted, you will sign and enter into the agreement together.

How could a join debt consolidation loan help me?

There are three main benefits to taking out a joint debt consolidation loan – beyond the fact you’ll stand the best chance of being accepted if you have poor credit.

Firstly, you’ll enjoy a fixed interest rate for the period of the loan – no changes. Ever.

Secondly, you’ll only have one monthly payment to take into account. That won’t change either, and it’ll be taken on the same day of each month.

Lastly, you’ll avoid the risks of a missed payment, which is easy to encounter when you have several debts with their own repayments and dates for collection. And that means you won’t fall into arrears!

Joint Debt Consolidation Loans Benefits

1. It’s Simple To Manage

Rather than having to track the payments that leave both your own and your partner’s bank account each month, you can benefit from making one payment each month. This ensures that neither yourself nor your partner misses a debt payment.

2. Building A Future Together

If you and your partner plan to be together for the long term, you’ll naturally want to work together to get yourselves in the healthiest financial position possible to help you build a strong future together. A joint loan ensures that you can help each other out at difficult times, and not one partner is solely liable.

3. Fixed Payment Schedule

If you take out a joint debt consolidation loan with a reputable company, such as Debt Consolidation Loans, you can benefit from a fixed payment schedule. This means that the interest rates will be fixed, and you won’t be hit with any additional surprise costs that may worsen your financial situation.

4. Rebuild Your Credit Score

Should you plan on applying for a mortgage, paying off your debts with your partner can help you rebuild your credit score quickly, so you qualify for the best mortgage agreement possible.

What else should you know before taking out a joint debt consolidation loan?

Key Facts About Joint Debt Consolidation Loans:

These are joint loans between partners, but they don’t need to be between married individuals. Anyone can take out a joint debt consolidation loan with you if they are in a similar position and keen to consolidate loans to a better rate. This type of loan product can make it easier for you to gain acceptance from lenders because there are two applicants named on the loan product and jointly responsible for its repayment.

These are specialist loans, designed to pay off various other smaller credit balances. Different companies offer them with different interest rates plus varying terms and conditions. It’s important to read the Ts and Cs carefully to ensure that you pick the right joint debt consolidation loan for your needs. Above all, make sure that you can afford the monthly repayments. If necessary adjust the loan term so that you are repaying a more affordable amount each month, noting that this will increase the total amount that you repay overall.

Any type of debt consolidation loan should be taken out carefully and with thought and planning. These types of loan are like any other credit arrangement. You must stick to the terms of the credit arrangement or you will find yourself facing higher fees, late repayment charges and even court action. Where possible always seek advice about your financial situation and do a budget beforehand so that you are sure about the amount you can afford to repay every month. This will help you to choose the right financial product for your debt needs. A good adviser will be able to tell you which type of debt management product or programme is right for you.

Joint consolidation loans are a good way to get back onto a sure footing with your finances. With your smaller credit balances paid off and replaced by a single affordable loan, you can start to budget and manage your money for the longer-term, building up a savings safety net and seeking to avoid problematic debt in the future.

If you are facing serious money issues and want some impartial free advice the money advice service can help.

Can you apply for a joint debt consolidation loan?

Yes, you can apply for a joint debt consolidation loan with a partner, spouse, close family member or friends. An application for joint debt consolidation means that you can join forces, bringing together your income, debts and credit scores. A joint application means that you will both sign the agreement together.

Debt consolidation loan joint application

A debt consolidation loan joint application lets you team up with a partner, spouse, close family member or friends and work to clear your joint bad debts together. A joint application combines your income, debts and credit scores. You can apply with a joint application, which might help you to be accepted if you’ve had trouble in the past. A joint debt consolidation loan will see you sign a loan agreement together.

Joint unsecured debt consolidation loans

Debt consolidation loans are a viable option for those looking to get rid of their bad debt, including credit cards and consumer debt. If you are working with your spouse or partner – or even a close family member – you may be able to apply for a joint debt consolidation loan, even if neither of you is a homeowner. If you do not have a property against which to secure a loan, you may still be able to take out a joint personal loan.

Can you get an unsecured debt consolidation loan?

Yes, if you’re looking for a debt consolidation loan and do not have a property to use as loan security, you may still be able to get a loan. Using a debt consolidation loan to tackle an issue of bad debt, you may be able to take out an unsecured consolidation loan, otherwise known as a personal loan.

Joint debt consolidation loan bad credit

If you’re struggling to make multiple loan and credit card repayments and your part of a household or a couple, you may be able to take your bad debt on as a joint operation. A joint debt consolidation loan allows you to bring together existing debts from two different people and pay them off together with one loan, which has one monthly repayment and one interest rate. A joint debt consolidation loans for bad credit application means that lenders will check both credit records to make a decision. This can mean that you are accepted for a loan where you may not have been in the past.

Should Married Couples Get A Joint Debt Consolidation Loan?

A joint debt consolidation loan could help you to better manage household spending as one consolidated loan will result in reduced, manageable monthly payments, the opportunity to reduce the interest on repayments from moving from high-interest credit and store cards to a loan and you may even be able to improve your credit rating by making monthly payments in full and on time.

If you choose to take out a debt consolidation loan as a married couple, you are essentially agreeing to use your combined income and credit capacity for the application process. Here we discuss the advantages and disadvantages, and what must be considered:

Advantages Of Getting A Loan As A Couple

In general, it is easier to improve the quality of your application and increase how worthy you are of credit by combining your assets. This way, if one of you has a higher debt-to-income ratio than the other, you can use the lower figure to improve the ratio. If you happen to have a bad credit score, you may be refused a debt consolidation loan. However, if your spouse’s credit score is better, your application may be approved by taking this into account.

Disadvantages Of Joint Loans

As you’d probably expect, if you borrow money as a pair, you are both legally obligated to pay it back, despite how your individual incomes may differ. In most cases, one spouse is taking more responsibility for the debts created by the other. As they are now equally liable for repayment, this member of the pair may have put themselves at financial risk. In this case, you should also expect to see a potential fall in your credit score, as any debts that were originally affecting your spouse’s loan will also have an impact on yours.

While nobody wants to pre-empt a marital breakdown, this possibility must be considered before you take out debt consolidation for married couples. If you end up divorcing your spouse, you will still be liable to pay back any joint loans. Debt cannot be specifically allocated in a separation agreement, meaning you could easily be left with debt payments that you can’t afford, and shouldn’t have been yours to pay in the first place.

Best joint debt consolidation loans

When looking around for a debt consolidation loan for bad debts, make sure to look for one that best suits your needs. Consider the repayment terms and length of the loan, as well as interest rates and monthly payment figures.  

Why condense all your debts into one loan?

  • It will improve your financial budgeting each month
    You can group all your borrowing into one monthly repayment, which is easier to manage.  So choose the best consolidation loans of 2020 now!
  • Reduce your overall repayment costs
    A loan could actually help you to avoid paying more money each month if the interest rate is less than the combined total interest of all your debts.
  • A better personal credit score
    You are more likely to repay one loan payment on time every month, rather than many confusing payments across the month. This will then prove that you are a responsible borrower, which will eventually improve your credit score.

Are there any risks?

Joint debt consolidation loans aren’t for everyone. It’s important to bear in mind that, because you’re both signing the agreement, you’re equally responsible for repaying the loan. If payments are missed or you stop paying before the end of the agreed term, both of your credit scores could be affected. Hence, make sure to assess the risks involved before applying for debt consolidation with default.

Entering into a financial agreement of any kind with a family member – no matter how close you are – is always a big deal, therefore it pays to have an in-depth chat about the idea beforehand so you can both make an informed decision.

When To Consider A Joint Debt Consolidation Loan

Joint debt consolidation loans are a great way to relieve financial pressures in a relationship. The way they work is quite simple – as a couple, you apply for a joint consolidation loan, which is used to pay off your existing creditors. From here on in, you’ll only need to make one affordable monthly repayment which is lower than your existing spending on debt.

This way, you can get your finances back on track, which will almost certainly make your personal relationship less stressful.

Could A Joint Application Increase Our Chances Of Getting Finance?

It’s true that, in some circumstances, applying jointly for a loan could improve your chances of being approved for credit. There are lots of firms offering attractive deals on joint debt consolidation loans. However, there are some instances when a joint loan may not be a great idea.

As a couple, if one of you has a poor credit rating while the other doesn’t, you should avoid applying for joint debt consolidation loans. If you have a joint debt with someone, your credit file is inextricably linked with theirs. This means that if your credit rating is perfect, but your partner’s rating isn’t, your credit rating could be adversely affected in the application process.

In this instance, it’s better to apply for debt consolidation loans as a single entity. This way, you’ll retain your good credit score while being able to deal with joint debt currently faced by you and your partner.

Contact us today

We’d love to help you move towards a debt-free future. Our friendly team will offer no-obligation advice and answer any questions you might have about joint debt consolidation loans – just call us today.

Why condense all your debts into one loan?

  • It will improve your financial budgeting each month
    You can group all your borrowing into one monthly repayment, which is easier to manage.
  • Reduce your overall repayment costs
    A loan could actually help you to avoid paying more money each month if the interest rate is less than the combined total interest of all your debts.
  • A better personal credit score
    You are more likely to repay one loan payment on time every month, rather than many confusing payments across the month. This will then prove that you are a responsible borrower, which will eventually improve your credit score.