Please advise me Re:splitting up and money owed

StevenP_2

Hi all
Myself and partner have split up , its a distressing time and both of us are gutted , but i am aware that when the hurt subsides the reality kicks in , and the reality is that we owe lots of money !
Can people advise me (us , as we intend to at least try and stay amicable) what to do regards paying ours debts when we are not togethre
If its ok i was going to list what i owe (as in in my name) and what she owes , as in her name , bear in mind we buolt up this debt together over the years so we know we owe it together regardless of whos actual name is on the debts

Just for info we never miss payments and our credit is reasonable (we are not married)
I hope that sounds fair ??
Anyhow..these amounts are what are owing
Me
EGG Loan £1900 £77 p/m
EGG Card £1900 £40 p/m

Her
Halifax £1700 £40 p/m
BOS £2300 £55
Barclaycard £6500 £155 p/m
Barclays Loan £18000 £280 p/m
These debts have accumalted in many ways but we regard them as joint , regardless
could some KIND KIND soul please give me some advice on what our options are !
Any advice and help (or if i am in the wrong forum) would be greatfull received

Kevicho

I know this sounds harsh and unkind but from a legal standpoint these debts are solely the responsibility of the person who signed for them.

StevenP_2

but i am not asking from a legal standpoint mate
I just want advice on the best way to get each others share to the same place , ie the creditors !

jessicad_2

ahh sorry to hear that you are having a difficult time, it sounds as if you are both being reasonable people and very mature about the situation.

Could you look at snowballing the debts - look at https://www.whatsthecost.com this is a calculator which tells you how much to pay off each month to clear your debts as fast as possible.

It may also be worth you agreeing each of your payments, and then setting up a joint bank account that all the debts are paid from, you can then each pay in what needs to go in each month. The debts are dealt with and you can go your separate ways as long as you trust one another to make the payments till its clear.

Another suggestion which may not be a good idea but others will come along and tell me off if this is not a sensible suggestion. 

How about adding up the debt, take out a seperate loan each for half the debt, pay them all off using that money then you each have your own half of the debts to pay and are responsible for yourself and you can split up amicably knowing its covered and you have your own responsibilities.

good luck and I hope you are able to maintain good relationships
best wishes
jess

bank_of_slate

Hi Steven, can't offer any specific advice myself but welcome to the forum, stick around, there will be lots of helpful regulars here later!
...Linda xx

southernscouser

Legally you are only responsible for the debt that is in your name.

But if you are prepared to pay your share then all I can think of is;

a) Paying your ex a certain amount each month to cover your share.

b) Transferring some of the debt on to maybe a low life of credit card should you be accpeted.

Obviously both options have their pros and cons! :undecided

StevenP_2

jessicad wrote: »

Could you look at snowballing the debts - look at www.whatsthecost.com this is a calculator which tells you how much to pay off each month to clear your debts as fast as possible.

It may also be worth you agreeing each of your payments, and then setting up a joint bank account that all the debts are paid from, you can then each pay in what needs to go in each month. The debts are dealt with and you can go your separate ways as long as you trust one another to make the payments till its clear.

Thanks for your kind words and advice

My thinking is that i should set up a standing order to her account for half the money
But the problem is when will i know the debts going down or even finished , if we arent able to remain cordial enough to share looking at credit card statemenst etc i could be paying forever !

Thanks again though for your advice :beer:

southernscouser

jessicad wrote: »

It may also be worth you agreeing each of your payments, and then setting up a joint bank account that all the debts are paid from, you can then each pay in what needs to go in each month. The debts are dealt with and you can go your separate ways as long as you trust one another to make the payments till its clear.

Personally I don't think this is a good option!

You leave yourself open to a hell of a lot of trouble. Firstly you will have a financial association with each other. Your ex's credit record will impact yours and vice versa.

Either of you could withdraw all money in this account and the other party can do nothing about it.

For a seperated couple it could be really messy!

:undecided

jessicad_2

I work out the total debt as £32,300.

So that is an equal debt of £16,150 - could you each manage and be approved for loans of that proportion in order to divide the debt into both names and to get it paid off without sharing bank accounts?

Of course, rather than a loan if you can do this by splitting the debt over low interest rate credit cards preferably at 0%, you can make over-payments on the debt, this is then a much cheaper solution and will get your debt paid off quicker than taking out a loan with a fixed term and fixed interest that you are tied into.

You will both have to be very disciplined in making your payments doing it this way, but either way, it means you leave the relationships with the debt divided equally into your own names then at least you can make a new start without the complications of shared finances, credit reports and bank accounts

dancingfairy

I think maybe if you both did SOA's seperately and assessed what both your situations will be like. Then sit down and see what you can come up with - ie is one earning more than the other and can pay more? is one going to have a much higher rent bill and can afford less of the repayments? that sort of thing. You obviously need to work out whether you can afford to live serperately and then how much you will have left to pay debts off.


As far as I know you are only liable for debts in your name. I think it might be best to get some professional advice on this one.

floss2

Why not take out a loan & pay off the OH's credit cards, leaving her with the loan.....if you wanted to be really 50% man, then pay the balance of your half of the total debt off the loan as an overpayment? Then you can pay that loan off with your £3,800, and OH can sort out the loan, without linking your finances.

I worked out:

you - £3,800
OH - £28,500
50% each = £16,150