You may know already that the deal with a joint debt is that when one person fails to make their payments, the other person may become solely liable for the WHOLE entire debt. That can apply to your mortgage or rent, your council tax, gas, electric and water!
It’s common for couples to set up a joint account to share living costs and so on. There may be an overdraft facility included. Bear in mind, if you go overdrawn, you’re both responsible for paying it back. Equally, if you pay in money, the other person can withdraw it.
Sometimes it’s wise to keep your own bank accounts and just transfer over an agreed amount into a joint account to cover your shared costs.
A few facts to bear in mind:
- If you’re married you’re not automatically liable for any of your partner’s debts in their name alone, even if you live at the same address.
- With a joint debt, if things go wrong, it will show on your credit file – even if the other person was responsible.
- Equally, when there’s a good payment history on a joint debt, it helps show other lenders in the future that you’re trustworthy. So in these cases it’s a good thing.
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