When you are entering a Debt Management Plan (DMP), or any debt solution for that matter, you can often have many questions. One we often get asked is: will a Debt Management Plan affect my partner. This is by no means a stupid question and is one that it is worth considering before entering a DMP. So, let’s run through how a Debt Management Plan could affect your partner and to what extent.
Do I need to tell my partner about my Debt Management Plan?
First things first, does your partner need to know about your DMP. Largely, it depends.
If you have no joint debts or assets with your partner then legally no, your partner does not need to know about your DMP. However, if you have any joint debts, credit cards, bank accounts or assets then you will need to inform your partner about your DMP. This is because these debts are in both of your names and therefore you are both equally liable. If you do have joint debts with your partner, you could be eligible for a joint debt management plan. Use our free our free online debt advice tool to find out.
While you do not need to inform your partner about your DMP if it only concerns debts in your name, we recommend talking to your partner if you are entering a DMP. Talking to someone you trust can really help to ease the burden of debt and help you tackle it head on. Likewise, as you cut down on your outgoings during a debt solution, it can help to have your partner’s support and cooperation on this.
Will my DMP affect my partner’s credit score?
If your finances and your Debt Management Plan are separate to your partner’s then no. However, if you do have shared debts then your partner’s credit score could be affected by your DMP. It would also affect your chances of getting a loan together in the future.
Will my partner’s income be taken into consideration?
Again, this depends. If you pool together your incomes to pay for household bills, rent and other associated living costs then your partner’s income may be taken into account when you apply for a Debt Management Plan. Adding your partner’s income to your Debt Management Plan can help to clear your debts faster, although of course, you would need to notify and discuss this with your partner.
Will my partner’s house be affected?
No, if the house is not in your name, then your partner’s house will not be affected by your DMP. This is even the case if you live together or move in.
In most cases your Debt Management Plan will not affect your partner and they do not need to know about your DMP. To see if you are eligible for a Debt Management Plan, use our free online debt advice tool.
P.S. using our online tool also won’t affect your partner.