Various Issues re - Financial Links

dibba66

Hi!

I have various financial issues I'd like advice on so hope I'm posting in the correct forum.

Five years ago, I had never been in debt but soon after splitting from my wife, I got together with someone else with whom I had a two year relationship. During this time, we lived together and shared a joint bank account. As a result, mainly, of 'her' excessive spending, 'we' got into debt (well, she was already in this position). Due to this and other issues, I got out before she took me under. As a result however, I have ended up with £30 000 of debt in my name, which I am able to pay, though not particularly comfortably unless I do extra work (which I often do).

On obtaining a credit report from Experian, this debt is shown and I am clearly financially linked to my ex even though we separated two years ago. She has since come close to bankruptcy due to her own much bigger debts, and I believe has used some agency to negotiate with her creditors. The last time I spoke to her, she told me the amount she had to pay back had been reduced and that she would be debt free in 13 years! It appears however, that one of the links concerns a £25 000 loan she took out to pay off her first round of debts, debts incurred before ever meeting me. When I enquired with the loan company why both our names were shown against this sum, I was told I had acted as her guarantor. I have a vague recollection of my ex telling me, when on the phone to arrange the loan, that the company needed my details. Stupidy, I didn't question the reason for this and when the cheque was delivered and she asked me to sign a document for it, I (again naively) did so. How daft can one person be, but at the time I trusted her.

I am no longer in touch with this woman but it would seem she is keeping up repayments as I haven't been contacted re any default in payment. If I was, I would struggle to pay anyway.

I have now met a wonderful woman whom I am moving in with in September and marrying next March. She is fully aware of the situation and whilst not happy about it, is understanding. My new partner is financially fine with a blemish free credit history and a house worth £250 000, with as mortgage of £50 000. We are quite clear that because of the fact that bills and so on will now be shared, we can sevice my debts more vigorously whilst still enjoying more disposable income as a couple than we have separately at present. However, I have the following queries / concerns:

1. If we retain separate bank accounts for the time being, can we avoid my partner becoming financially linked to me. I've been in the position she now finds herself and in no way do I wish to negatively impact her credit score. Can joint council tax payments etc. have an effect? What is the best way around this?

2. By our estimation we can be free of my debt (not including the £25 000 I guaranteed), within 3 years. Before that though, my partner would like to remortgage in order to extend the house. To what extent would a link to me affect this?

3. I'd love to remove the link to my ex. How possible would it be to do this, or do I have to just grin and bear it?

Any advice would be greatly appreciated. Thanks.

angelavdavis

dibba66 wrote: »

1. If we retain separate bank accounts for the time being, can we avoid my partner becoming financially linked to me. I've been in the position she now finds herself and in no way do I wish to negatively impact her credit score. Can joint council tax payments etc. have an effect? What is the best way around this?

I don't believe Council tax will have a problem, because it isn't credit as such (although you will be listed under the same address. Debt is based on an individual. Its only if you take out joint debt that you will become associated. That is my understanding.

dibba66 wrote: »

2. By our estimation we can be free of my debt (not including the £25 000 I guaranteed), within 3 years. Before that though, my partner would like to remortgage in order to extend the house. To what extent would a link to me affect this?

As previous, she can remortgage and as long as you aren't part of that mortgage agreement nor share any credit, she shouldn't be affected.

dibba66 wrote: »

3. I'd love to remove the link to my ex. How possible would it be to do this, or do I have to just grin and bear it?

Any advice would be greatly appreciated. Thanks.

You can ask for Experian, and other credit agencies to disassociate you from her. You can also add an explanation of up to 250 letters explaining the situation. I am afraid, it doesn't guarantee you future protection, as you have a shared debt (whether or not you were tricked into it)

dibba66

Thanks, Angela, that's great advice!