Loan and credit card after separation
Marchant2651
Posts: 17 Forumite
in Loans
Hey all,
I am hoping someone can put me straight and offer some advice on the issue i'm facing with debts and separation.
My wife and I are separating, we have worked out all our outgoings and can afford to separate and live separately.
The issue I have is that I have a loan that is in my name for 10000 pounds. I took this out as my wife's credit was terrible at the time and still is (bankruptcy), the loan was to help with cars and we moved around a lot (previously in the military). I also took out a credit card for 5000 pounds for emergencies and didn't use it. My wife has spent all the money on the credit card (she admitted this to me). My trouble is, I know that she isn't legally obliged to pay any of these debts, they are all in my name and my responsibility. What are my options here as I cant afford to pay them all on my own? She has agreed to pay half the loan and pay the whole credit card, but that means I have to rely on her paying her share to live. Its a hard one because a hope she will stick to her word but at the same time I have to make sure I can pay the rest of my bills and pay for food.
If anyone has any advice it would be much appreciated as i'm very stressed with this.
Thank you
I am hoping someone can put me straight and offer some advice on the issue i'm facing with debts and separation.
My wife and I are separating, we have worked out all our outgoings and can afford to separate and live separately.
The issue I have is that I have a loan that is in my name for 10000 pounds. I took this out as my wife's credit was terrible at the time and still is (bankruptcy), the loan was to help with cars and we moved around a lot (previously in the military). I also took out a credit card for 5000 pounds for emergencies and didn't use it. My wife has spent all the money on the credit card (she admitted this to me). My trouble is, I know that she isn't legally obliged to pay any of these debts, they are all in my name and my responsibility. What are my options here as I cant afford to pay them all on my own? She has agreed to pay half the loan and pay the whole credit card, but that means I have to rely on her paying her share to live. Its a hard one because a hope she will stick to her word but at the same time I have to make sure I can pay the rest of my bills and pay for food.
If anyone has any advice it would be much appreciated as i'm very stressed with this.
Thank you
0
Comments
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Sorry I can't give any more positive a reply, but I think you know yourself what the situation is and what your options are really are
The debt is in your name and therefore you are liable to pay it back, so you are relying on your wife keeping to her word and paying what she agreed to.
If she doesn't and you can't afford to pay it back, then you'll have no real choice but to default and come to an arrangement with your creditors.
I just hope you keep on friendly terms and that she does the decent thing and keeps to her word.0 -
I hope so too, thank you for your honesty.0
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There's not much you can do, I agree with the previous advice given.0
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When you worked out the budgets, did you notice whether she could afford to pay it?Marchant2651 wrote: »
My wife and I are separating, we have worked out all our outgoings and can afford to separate and live separately.
She may be in the same boat as you in that she only just afford to live alone and eat etc - all the best intentions in the world then mean she couldn't afford to pay the debt. The result is covered above.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Hey Dobbibill,
She can definitely afford it but she doesnt have a great track record when it comes to money, this is why im nervous about relying on her word.0 -
Is she in a position to get a BT card - I know you said she was previously bankcrupt but if eligible she could BT your CC balance to her card/name. Although not half the debt, at least it would only leave you with the loan to deal with.
If that's not possible at the moment - ask her nicely about setting up a SO to contribute. This may only last a few months but something is better than nothing.
Also head over to the DFW board and post up a SOA - you'll be surprised where savings can be made with fresh eyes, freeing up more money for the debt repayments.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
What about the wife's car?
Who's name is on the logbook and insurance? Who's name was it bought under?"There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Is she in a position to get a BT card - I know you said she was previously bankcrupt but if eligible she could BT your CC balance to her card/name. Although not half the debt, at least it would only leave you with the loan to deal with.
This. I did this with my son for a car I got on finance for him on a 0% card in my name when he left home. It is perfectly possible to BT to a card not in your name.0 -
The car is in her name and insurance.
Sorry im not sure what a BT card is? Balance transfer?0 -
Marchant2651 wrote: »The car is in her name and insurance.
Sorry im not sure what a BT card is? Balance transfer?
You are quite right, a BT card is a Balance Transfer card.
It is possible to transfer CC across cardholders eg - his to hers etc.
Normally doing it online with a different provider to the original debt avoids questions. Once the debt is on her card, she is liable and you are not meaning if she doesn't pay it won't impact you at all as your CC will be paid off.
With a bad history that may not be possible but it's sounds like it's your best way to salvage any funds by doing above and then just dealing with the loan yourself. She may agree to do it while you are on reasonable terms.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0
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