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Unmarried couples face bad debt risk
Unmarried couples are being urged by debt advisors to take out loans in joint names, otherwise one partner could be left with huge debt problems.
While married couples are protected by legal rights, if a couple splits up and one partner refuses to pay their fair share of loans and credit card bills accumulated together, the debt is legally the responsibility of the person's name under which it was acquired.
This can leave half of the couple with a huge financial headache, in addition to a broken heart, reports the Daily Mail.
"By law there's not much that can be done," explained Antonia Murfin, co-habiting expert with Living Together, a government funded organisation.
"Usually, the couple will make a voluntary agreement so they both contribute, but it's best to take out loans in joint names if they want to borrow money to make a big purchase."
The problem can also occur if debts are taken out in joint names, and one partner refuses, or is unable to pay up. In such circumstances debt collectors will chase both parties, and the credit history of both can be damaged.
To prevent financial complications should a break-up occur, couples are urged to consider their position carefully before taking on debt. If they do find themselves in trouble after a split, partners are being urged to seek professional debt advice.
About the Author: Diane Middleton writes on matters relating to debt advice in the UK, and especially debt problems. She is particularly interested in personal finance, writing on best approaches to getting a secured loan, and the background issues relating to debt consolidation.
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