Joint Account For Bills?

natba94

Hi all,

I'm living with three other students, and our bills now need paying. Should we open up a joint account?

I was initially in favor, but the internet (sigh) had something about us being linked to the account even after it'd been shut, and if anyone gets bad credit, then it affecting the rest of us for years. We're all able to pay the bills extremely comfortably each month, so we should be OK for as long as the account is open, but is this a good idea in the long term (for credit ratings etc.)?

The only other option is to put the account in my name; however because I'm with two international students, as well as hearing stories of some of my friends getting screwed over by housemate not paying, I don't want to do this. Plus if anything goes wrong, it's me who'll feel the consequences, and not them.

Any advice?

grumbler

natba94 wrote: »

I'm living with three other students, and our bills now need paying. Should we open up a joint account?

Never!
Even if it's a family member or a partner you have to think twice before opening a joint account. It creates problems, but doesn't do anything that a sole account can't do.

The only other option is to put the account in my name; however because I'm with two international students, as well as hearing stories of some of my friends getting screwed over by housemate not paying, I don't want to do this.

And how can a joint account help if they don't pay?

Plus if anything goes wrong, it's me who'll feel the consequences, and not them.

What consequences? How the payments have to be made?

Any advice?

Sole account. Full stop.

SuperHan

Share the bills between everyone... So one person pay TV, one person pay electricity etc etc.

Then work out how much there is to pay in total and split it between everyone, then set up standing orders to make sure each person is paying the same amount.

Eg, £100 total spend, so you all pay £25 each
TV Licence £10
Electricity £50
Sky £30
Water £10

Then the Water payer and the TV licence payer will pay £15 each split between the other two, to make sure everyone's net expenditure is £25.


It's a bit complicated to set up at first, but this is how we did it as students. If someone stops paying their share, you can stop paying toward their bill, so it encourages everyone to pay.

Bloomberg

SuperHan wrote: »

Share the bills between everyone... So one person pay TV, one person pay electricity etc etc.

Then work out how much there is to pay in total and split it between everyone, then set up standing orders to make sure each person is paying the same amount.

Eg, £100 total spend, so you all pay £25 each
TV Licence £10
Electricity £50
Sky £30
Water £10

Then the Water payer and the TV licence payer will pay £15 each split between the other two, to make sure everyone's net expenditure is £25.


It's a bit complicated to set up at first, but this is how we did it as students. If someone stops paying their share, you can stop paying toward their bill, so it encourages everyone to pay.

Your idea is a very good one, the upshot of the situation is that people and money almost invariably do not mix. Money brings out the worst in people, I tell my wife and children to never discuss their finances with other people.