Debt management plan and dh’s credit score.

[Supereggs]

Hi,
I am about to enter into a debt management plan to deal with my problem debts. This will obviously trash my credit score. My concern is how this will also affect my husband?

He doesn’t have any debt issues and has a good score. None of the debts in my debt management plan are joint debts, however we add financially linked as we share a joint Mortgage, and a joint account. These are both fully up to date.

Does anyone know what impact this will have on him? Has anyone else got experience of dealing with problem debts when your partner/spouse is not in that situation?

TIA

If the mortgage and joint account are in order (no missed payments, unauthorized overdraft charges, etc) then you being on a DMP will not have any effect on your partners credit score.

Well done for taking control of your debts OP. Best of luck!

This is not necessarily true. Because you have the joint mortgage you are what is called “financially associated”. This means that his credit score may well be affected even though the mortgage is presumably not included in your Debt Management Plan.

I thought that there may be some impact. I’m assuming that this will only be an issue if he tries to apply for new credit?

It will impact him in the same way poor credit would impact anyone, so things like applying for new credit cards/loans/car finance would be the obvious ones, but also things like if his car insurance is up for renewal then that would be affected. Depending on his job role that could also be an issue because some jobs (mine and my husband’s included) you cannot do if you yourself have poor credit, lots of jobs in the financial sector are like that.