The repercussions of marrying into bad credit
In a relationship, there are many issues that can come about when it comes to money. Credit worthiness can be a tricky subject to delve into with your partner – especially when trying to divulge that your credit rating is a little more red than black. When one partner has excellent credit and begins a relationship with a new partner that has made mistakes in the past leading to a lower credit rating it can be difficult to begin a dialogue.
There are many things to remember when you marry into bad credit. Just because you are signing nuptials, does not mean that you are going to be effected by the lower credit rating. When you apply for a loan, credit card or other type of credit – unless you are applying for a joint account, the creditor does not have the permission to check the credit report of your spouse, unless their name is on the application. If you prefer to keep your credit histories separate, until the bad credit issues have been resolved – it can be crucial to discuss this early on in the relationship.
Pressure for HBOS relieved but not for those in financial difficulty
Lloyds TSB’s takeover of HBOS will have done much to relieve the pressure for HBOS employees and the business as a whole, but will have done very little to allay the fears and worries of all their customers and other people facing financial difficulties because of the economic climate in the UK at the moment.
The Council of Mortgage Lenders reported that 155,600 households had arrears of three months or more at the end of the first half of this year.
The National Debtline, the helpline that provides free confidential and independent advice and guidance on how to deal with debt problems, reports that they received over 4,000 calls in relation to first and second charge mortgages during June, July and August this year, up from 2,865 the previous year.
More than 50% of their callers are female and more than 60% of their calls relate to bank loans, overdrafts, credit and store cards showing there to be real concern amongst people about their financial stability.
You may feel that a further purchase may put even more pressure on your finances but it is still worth considering purchasing income protection as a financial safety net, but be wary of buying cover offered by your lender – shop around, as much cheaper and more comprehensive policies can be purchased via independent providers.
Income Protection is designed to offer protection if you were to suffer from a condition or injury that prevented you from working. Shorter term income protection policies (known as accident, sickness and unemployment policies) can also offer cover against unemployment and redundancy.