Many people come to Fast Debt Help, who have joint debts with a partner.
First and foremost you must realise that if the debt is joint, each person will be treated as if they owe the total debt. So if one person does not, or cannot pay, the creditor is entitled to chase the other person for the full amount of the debt.
This brings some stressful scenarios for people who have separated. Be under no illusion that if you have a joint loan, even if you have an agreement that your ex partner will pay it and they don't, you will be chased for the total amount owing.
However, this debt can still be put in a debt agreement but will handle just that one persons obligations. The other person on the loan does not have to agree to this. They will have to handle their obligation separately. In Debt Agreements joint debts will always be shown as the full amount.
Because of this, where both partners are going into Debt Agreements and there is a considerable amount of Joint Debt, it may be more cost effective to look at an informal arrangement.
Generally speaking Debt Agreements are a more cost effective way to handle unsecured Debts, but the problem is, you cannot offer a Joint Debt Agreement. Where there is a large proportion of Joint Debts or it is the only debt, you can offer a Joint Informal Arrangement. In this case it can be a better option for all concerned.
Other than Joint Debts, an Individuals credit behaviour is their own. Your partners bad payment history will not affect your credit history. If you do a Debt Agreement or even go Bankrupt this does not affect your partners credit rating. The finance world recognises you as a unique individual.
So what do you do if your partner does not pay a joint debt? If you do nothing it will affect your Credit Rating. One option is to pay the minimum payments on this debt till you can rectify the situation. This will preserve your credit rating. If you are not in a position to do this, first talk to the Creditor, explaining the situation and try to come to a compromise. You can always contact Fast Debt Help to get the best way forward.
What do you do if your partner goes into a debt agreement and the Creditor chases you?
If you make the minimum payment the creditor can do nothing but must stop taking the payment once the full amount has been paid by you and the money they get from the debt agreement.
If your partner is a client of ours we would try and negotiate a payment plan for the other party to balance the debt.