Debt Consolidation Loans for Married Couples

If you marry someone with debt or you have debt yourself and you are worried about your new husband or wife taking on this debt, rest assured that debt won’t be shared just by getting married. Debt in their name has to be repaid by them. However, if you are looking for a joint solution to getting rid of bad debt, you may want to consider taking out a joint consolidation loan which brings together all your debt in one simple monthly payment with one lender.  

Married couples share the joint debt. This is debt that you have taken out jointly. This could be a credit card or an overdraft on an account. However, if you marry someone with debt, it does not become your debt and vice versa. If debt exists only in either name, only the name attached to the debt is liable for repayment.

When you marry someone with debt, it does not automatically become your bad debt. The debt exists in their name and so only they are liable for repayment. However, if you take out a joint debt or loan, you both become liable for repayment. If your spouse takes out a personal loan after marriage, you will not be liable for repayment on this loan.  

When you marry, you do not automatically take on debt that is only in your spouse’s name. It is theirs alone to repay. However, if you take out a joint loan or overdraft, the responsibility for repayment is shared. You can also not inherit debt, either from your spouse or your parents. When someone passes away, leaving debts behind, their debts are settled out of their estate (money or property left by them).

The Debt to Income (DTI) ratio is calculated quite simply and this applies to a married couple or anyone sharing a home and a relationship together. To calculate your shared DTI, add together the total of your monthly debts and then divide them by your total gross household income.

When you marry, the law states that all assets, including properties, that are acquired by a husband and wife during a marriage are jointly owned. This will also include any joint debts, but not loans or debts taken out by only one spouse individually.

As a married couple, you both had lives before you met one another, which means it’s possible that you both carried debt by the time you formed a relationship. When you pool your finances together, it can put great strain on them to have to bear the repayments of your combined debts up to that point.

This is where debt consolidation comes in – you simply take out a debt consolidation loan, pay off the combined debts you have accumulated together, and start your finances afresh! It takes all the pressure of you to keep track of your individual debts, you both now only have the one to think about.

Maximising The Potential Of Debt Consolidation

Debt consolidation loans make life so much easier, but it’s important to make sure you’re using them effectively. To do that, begin by taking stock of the debts you both have. Look at what is left to pay, how high the repayments are, and how regularly they’re taken out. This will give you some vital information.

You can determine which loans it makes the most sense for you to pay. If you have many loans between you, you might not be able to cover them all with debt consolidation. Paying off longer-term loans will help you avoid accruing expensive interest over time, so should always be a prime consideration.

Start Getting Your Finances Back On Track

It’s easier than ever to apply for a debt consolidation loan, especially when you deal with the professionals at Debt Consolidation Loans – they can help you regardless of your circumstances. As long as you’re a homeowner, you’re guaranteed to be considered, even if you’ve been refused elsewhere.

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.

A debt consolidation loan is a 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).