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Original poster

Does anyone know how much dh's debts will impact me?

2 replies

mugofteainmyhand · 30/05/2024 22:23

Hi,

Does anyone else have a partner/spouse/financial associate who has debt problems- DMP/IVA etc. If so, does this have any impact on you? My dh has entered into a debt management plan. I am supportive of this as its the right thing for him, however I am a little concerned that it will impact on me too. I have no unsecured debt but we do have a joint account and mortgage ( all up to date) so I am linked to him!

I was planning to finance a car towards the end of the year but I am now concerned that this will be an issue?

OP posts:
Bjorkdidit · 31/05/2024 05:36

The joint account and mortgage will show on both your credit records as a financial associate although I don't know how it will affect your car finance application.

The other possible impact will be the amount his creditors want him to pay. If it's too high it will obviously reduce the amount he can put in the household pot.

But from the creditors point of view, they want to make sure they get their fair share, ie he can't claim all his money goes on essential household bills so he has no money to pay his debts leaving your income free to save and spend on nice things and activities for you both.

But if he's in a formal debt management plan then hopefully that's been agreed in a way that's fair to both of you and his creditors.

You could need a plan B for the car. Assuming you're not paying off debt yourself, so have the money available, you could save the amount of expected car finance each month for the next 6 months and as well as getting used to the impact of this on your budget, you'll save up a sum of money that you can use to buy a car or at least reduce the amount you finance if you can only get poor credit finance which is more expensive.

Original poster
mugofteainmyhand · 31/05/2024 08:43

Bjorkdidit · 31/05/2024 05:36

The joint account and mortgage will show on both your credit records as a financial associate although I don't know how it will affect your car finance application.

The other possible impact will be the amount his creditors want him to pay. If it's too high it will obviously reduce the amount he can put in the household pot.

But from the creditors point of view, they want to make sure they get their fair share, ie he can't claim all his money goes on essential household bills so he has no money to pay his debts leaving your income free to save and spend on nice things and activities for you both.

But if he's in a formal debt management plan then hopefully that's been agreed in a way that's fair to both of you and his creditors.

You could need a plan B for the car. Assuming you're not paying off debt yourself, so have the money available, you could save the amount of expected car finance each month for the next 6 months and as well as getting used to the impact of this on your budget, you'll save up a sum of money that you can use to buy a car or at least reduce the amount you finance if you can only get poor credit finance which is more expensive.

Thank you. It's really unclear when I look online as to whether my credit score will instantly drop as a result of his debt issues, or if it will only be an issue if he applies for new credit

OP posts:
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