Combining debts with husband's...good idea or not?

[hunnybunny123]

Hi there, i am new to the site and would really welcome some advice. I got married earlier on this year and my husband has just told me about debts that he incurred (loan , credit card) when made redundant a few years ago. Currently he owes about £35k (a hude chunk of which i am guessing is charges and interest) and hasnt made any payments for over a year. He has only just found a new job, which is part-time and pays around £700 a month. The house that we live in is mine from well before we married and I am the main earner, earning around £2500 each month (although some of that is self-employed so does vary). I do have debts of my own too (loans, credit cards), having lost one of my jobs last year due to funding issues (one of the downsides of being employed in the voluntary sector) and was beginning to struggle to pay them myself.

Before finding this site (and how glad i am that we now have!), we decided to approach all of our creditors with a budget planner ( we spoke with national debtline for help) that combined our income and debts and offer each of them a reduced amount (we have about £600 a month to pay things off with). This was in mid December and no-one has responded to this yet. What i was wondering (as the title suggests) was whether combining them was the best way forward or whether we should have kept them seperate?

 

Any thoughts would be most welcome,

 

Thanks

[gizmo111]

Well any repayment plan would take into account the joint household income. However it is important to not put any of his debts in your name. The problem with what you are doing is even if the creditors freeze interest you will be paying these off for the next 10 years. As he has no assets and very little income have you considered him becoming bankrupt and then paying off the £600 per month to your debts? This would get you debt free in around 4 years, provided they freeze interest. Alternatively you may then be in a position to consider an IVA, although I would think very carefully before you do this.

Have you claimed back charges?

Has he tried getting a full time job as at present almost all his income is going on debt repayments.

[hunnybunny123]

Hi and thanks for getting back to me so quickly. We have talked about him going bankrupt as he has no assets of his own, his only concern being whether he would be viewed as having beneficial interest in my house now that we are married (although he has not contributed until finding his current job). Having read some of the posts on here, we wondered whether he should ask for CCAs for loan and credit card (both with Lloyds)?

He is hoping that a full-time option will become available at his current workplace, although it is a physical job and he has got long-term health problems that may be mean that he wouldnt be able to manage this.

No claims in for charges, this is something that we could consider, what is the process?

Finally, I have no plans to put any of his debts in my name!

[gizmo111]

The beneficial interest in your property would be negligible if any after such a short marriage.

[pt2537]

. Having read some of the posts on here, we wondered whether he should ask for CCAs for loan and credit card (both with Lloyds)?

 

now this could be useful to you, if the creditors come back with unenforcable agreements then it would most surely give you greater bargaining powers with the creditors to discuss greatly reduced repayments and also to allow you to have the interest freezed too in my humble opinion

[Hopeful1]

Hi HB.

 

As Paul has said i would consider sending off CCA requests. I would also consider reclaiming charges to reduce outstanding balances. This would give you a clearer picture of how much debt you're actually dealing with.

 

The process for charges is in the bank templates library. The link below will take you to the Subject Access Request (SAR) template letter. Send any letters recorded delivery at least and at best special delivery. I tend to use postal orders to cover payments (£10 for a SAR).

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/516-1-data-protection-act.html

 

Post up any further questions and progress. You'll have lots of support here

[hunnybunny123]

Thanks again for all your help, letters will be duly sent off today.

 

I wanted to say to you all how finding this site has humbled me and reminded me of just how much compassion can be found for one's fellow man. I think it's just wonderful that so many folk are giving so much of their time and knowledge to support others. My husband is a very giving person himself (part of his own debt having been created my lending large sums of money to family and so called friends that never repaid him) and he was getting himself in a terrible state about all of this before finally telling me about it. Silly really as I could never be cross with him for anything other than not feeling able to tell me!

 

Thanks again, once we are out of this pickle I will donate what I can so that this site can keep going. I work as a Counsellor and have seen families affected by a debt-related suicide so I can absolutely tell you that what you are doing is saving lives.

 

Much love to you all

 

HB

[Hopeful1]

Thanks again for all your help, letters will be duly sent off today.

 

I wanted to say to you all how finding this site has humbled me and reminded me of just how much compassion can be found for one's fellow man. I think it's just wonderful that so many folk are giving so much of their time and knowledge to support others. My husband is a very giving person himself (part of his own debt having been created my lending large sums of money to family and so called friends that never repaid him) and he was getting himself in a terrible state about all of this before finally telling me about it. Silly really as I could never be cross with him for anything other than not feeling able to tell me!

 

Thanks again, once we are out of this pickle I will donate what I can so that this site can keep going. I work as a Counsellor and have seen families affected by a debt-related suicide so I can absolutely tell you that what you are doing is saving lives.

 

Much love to you all

 

HB

 

 

What a heart felt post HB. Your sentiments are echoed by many, including me. I am certainly a different person to the one i was back in May when i discovered this site.

 

I am glad that your husband did confide in you too - he must really appreciate your support. Best wishes to you both