How to handle finances when cohabiting with OH with a TERRIBLE credit rating?

19lottie82

Hello! I’m after some advice, and I was hoping someone on the famous DFW board might be able to help?

Basically the situation is this…… I’ve been with my partner for almost 3 years and we are hoping to move in together in the New Year. However, due to a messy divorce just before we met, he has an awful credit rating and although he has never checked it, he is sure his credit report will be littered with defaults. He also has a joint debt of apx £30k with his ex, after they surrendered the flat that they lived in when they split. His ex has had a letter about this debt (I’m not sure of the exact details but I do know that she is on JSA so can’t pay anything), but he has never had any personal correspondence regarding this…… could be because he isn’t on the electoral register and has quite a common name……? He pays everything on time now and is very responsible BUT his history is terrible…..

In contrast I have a great credit rating with no defaults etc. I usually have a small bit of debt on a credit card (less than £1k) but this is always paid off, then ran up again when required (and repeat) plus a loan for a car with Tesco (£6k over 60 months, which has 15 months left to run)

Anyway, I’m looking for some advice as how to best handle things when we move in together? I’m not stupid and I don’t’ want to (and never will) put my credit rating, that I have worked so hard for at risk, so I know joint accounts are a no no! In terms of renting a place, his parents are quite wealthy, so will act as guarantors.

Would the sensible option to get the rental property in his name (backed up by his parents), while I get all the household bills in my name? We have worked out that these (including the grocery shopping with the bills), should work out about the same, so we can keep things separate, so to speak….

I know the situation isn't ideal but we are in this together for the long haul, so any further advice would be welcomed! Thanks!

Heffi1

I think the first thing he needs to do is find out exactly how much he owes and to whom, then formulate a plan to pay it back. especially as his ex is on JSA he may be liable for the whole of the 30K.

Better to find out now I think.

19lottie82

Yes, I'll be making sure he does this, although he won't be tackling the property debt unless they contact him directly regarding it. As he isn't really in a position to repay it at the moment AND If what I have read on here is correct then Nationwide (I think) won't be allowed to chase him for it after 6 years (less than 2 years away).

RAS

If he has a debt from a secured loan/mortgage, they can chase him for 12 years if they wish.

The better creditors tend not to chase after 6 years but then they sell the debt on.

19lottie82

RAS wrote: »

If he has a debt from a secured loan/mortgage, they can chase him for 12 years if they wish.

The better creditors tend not to chase after 6 years but then they sell the debt on.

Ah OK, thanks RAS.

Anyway, as discussed, he is determined to clear all of his other debts before we move in together, but this one will have to wait for now.

Back to the topic in hand..... any advice on how to set up the bills / expenses in order to protect my credit rating? I already know joint accounts are a no no, but is there anythign else I should be aware of?


Thanks