Couples Splitting Up Seperate Loans And Finances
Happy St Valentine’s day. Today is the day when love is in the air and everyone is feeling romantic, taking out a small loan in order to buy a dozen red roses, a card and an expensive box of chocolates. Even women are officially allowed to propose this month, due to the fact that this year is a leap year!
Anyway, that’s enough of romance! More and more couples are splitting up these days and whether or not they are married or living together, in many cases they are also a couple on a financial basis, often sharing a joint home owner loan or mortgage, or a joint personal loan or other form of credit.
In many cases, when a couple has separated, they often forget to separate their finances as well, which can sometimes lead to one party to a loan ending up with a bad credit rating, due to the fact that their ex partner has not kept up with the repayments on a joint personal loan or credit card.
This can lead to an individual not being able to take out a loan in their own name, or be able to obtain a home owner loan, due to a bad credit rating, for which they are not responsible.
As a result of this, more people are now seeking a financial disassociation from their previous partner in order to avoid such a situation and the credit rating agency Experian has seen an increase of 15 per cent year on year, in the number of people applying for such a separation.
Peter Turner of Experian said “Creating financial ties with a partner or spouse, such as a joint mortgage, loan or a bank account, is a big yet natural step to take in a relationship. However, should the relationship end, it’s crucial to ensure that the joint financial links between them are also separated.”
“Whilst thinking about loans and finances in the middle of a break up can be the last thing on someone’s mind, it can also be the first step towards financial independence.”
