Loan with ex partner

glennstar

Can you include the cost of finance and other relative pieces of information such as early payment penalties, etc? I ask as 10k over 21 years means you are likely paying a fantastic amount of interest over the period and it may well be (and I appreciate it hard to say without the details) that paying most or all now, even if your ex doesn't contribute, may be the least costly option in the long term.

I appreciate this doesn't address the emotional or moral aspects of this equation but from a pure cash perspective it might be your best option.

maginot

If you can afford to, I would just try and pay it all off yourself.

I know it doesn't seem fair as you both took out the loan and presumably both enjoyed what it was used for. Unfortunately, you cannot force someone else to pay it off. You are both jointly and severally liable for the full amount. They could stop paying in the future or just have a continued low credit rating. This doesn't just damage her credit rating, it will also damage yours as you are financially linked (and her not paying the loan is the same as you are not paying the loan).

All of these could end up costing you a lot more than £5000 in terms of future borrowing. This doesn't even include whatever interest you are paying.

21 years is a very long time

maisie_cat

It depends on how much money you've come into, if it's £100k then paying off the whole thing makes sense, especially if the interest for the next 21 years exceeds £5k. If your ex stopped paying her half now you'd be liable for the whole payment anyway.
Assuming that you have no children, the clean break effect of severing financial ties may well be worth £5k, I've paid more to facilitate a clean break even when I thought it wasn't "fair"

redpete

burlington6 wrote: »

Do not do this.

If you pay it off she might pay you for a bit, but, as an ex, she will soon stop paying.

At the moment she knows if she stops paying the company involved have the ability to wreck her credit rating and chase her for the debt.

You have the ability to do nothing to her.

She could decide not to make her payments against the loan now and affect both of theit credit ratings. I think I'd rather get rid of the 21 year commitment.