Debt management plan - did it impact your partner/spouse?

[couponsoup]

Hi,

I am about to enter a debt management plan. All of the debts that will be included in the plan are in my name only, however I do share a joint mortgage with my spouse.

He doesn't have any debt and has a good credit score. Will my debt management impact him?

The mortgage is full up to date etc

Thanks

Yes it will.

The joint mortgage will make him a financial associate so a DMP in your name is likely to damage his credit rating.

Lenders will (quite rightfully) consider him a higher risk as his wife has a DMP. The exact impact of this can't really be predicted though.

How did this happen? You're married, how on earth are you in the position of needing a DMP when he has no debt and good credit?

@couponsoup go on MSE Debt Free Wannabe board, as you can see from the comment above - MN thinks debt is the devils work and most of the people on here have 0 debt and just can't fathom the reality of it, they were fabulously helpful on the board on MSE when I was in the same situation as you

I second MSE money forum. There's a specific, long thread dedicated to DMPs.

From what I know, DMP will affect spouses, but minimally I.e. minor impact on credit score by a few points.

Ignore the PP, who cares how you got into this position, you're sorting it out. Well done!

Also, look into self managed DMP. If you're brave and don't mind the hassle then it's much better in the long run. Again, MSE forum has loads of info on this. If you do go with an organisation then make sure its stepchange or similar. Do not pay a private company to set this up for you. They are taking money from you when you can get it for free elsewhere.

as you can see from the comment above - MN thinks debt is the devils work and most of the people on here have 0 debt and just can't fathom the reality of it

That's not the case at all.

If one spouse has no debt and good credit and the other is in such a dire situation that they need a DMP, that's problematic in itself. It's a very unusual situation and I can't see how it's unreasonable to point this out to the op.

There are other, possibly more beneficial avenues that could be taken - such as transferring the debt to 0% credit cards in the DH's name. No DMP, no Defaults, no wrecked credit history at all.

Whilst the impact on op's DH's credit score may be 'minimal', a DMP could have wide reaching consequences for the household. They share a joint mortgage - so there will be no chance of remortgaging with another lender after this, possibly for years.

@UseItOrloseItt when done right, 6 years - been there, done that.

and consolidation is absolutely not always the best advice in these situations , nor is transferring personal consumer debt into someone else’s name. Hence the MSE board being the place for the best advice :)