The high divorce rate of recent in Britain is a major factor leading to ever increasing levels of debt, a new report claimed recently.
Debt Free Direct has claimed that the break down of marriages is a significant factor behind people's financial problems, which suggests that many are forced to take out a debt consolidation loan following the completion of a divorce procedure.
The debt advisory agency has reported that those who are divorced are a third more likely to be declared bankrupt. Of those divorcees, women are running the highest risk.
Females are 14 per cent more likely to face financial ruin and are 26 per cent less likely to qualify for an individual voluntary arrangement, which can prevent bankruptcy.
Heavy debts that are incurred by an ex partner are a major cause of financial problems, even after a divorce, with Debt Free Direct finding that an ex's excessive debts are an underlying factor in almost three in ten bankruptcies in the UK.
Typically, people in a relationship will take on debts in joint names with their partner, never believing that the relationship will end. But when it does the effect of divorce or separation can seriously heighten the impact of the debt problem, spokesman Derek Oakley explained.
Mr Oakley advised married or divorcing couples to take steps to protect themselves from the poor finances of their partner.
For example, he said, even after divorce, many couples still hold credit cards and / or store cards in joint names.
After separation it is important to advise the credit card company to terminate the joint card. If you do not do this, you could well be pursued for payments on debts that your ex partner has run up.
The report contradicts previous assumptions that debt levels are exacerbated by a growing consumerist culture and relaxed attitude towards credit.
© Adfero Ltd
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I owe $218,000 on my mortgage and $103,000 in ...
By: Joanne | 11-11-2008
I owe $218,000 on my mortgage and $103,000 in credit card bills. I tried to re-finance and consolodate but the bank said that my income isn't enough. Could I refinance the mortgage at a lower interest rate and get a home equity loan to pay off the credit card bills? Right now my mortgage is at 6.37%
Program that is going into affect to help homeowners with past due/foreclosure. Need phone numbers!!
By: Rhonda | 11-11-2008
Ok so they have this program for homeowners.. where or who do I contact. I can't find any phone numbers or people to contact. Can anyone give me some information? Please, email me at sueziq612@aol.com I need help and soon.. house is in foreclosure and I am afraid.Please someone help me.
Rates
By: nascartrucks | 10-11-2008
Why can't HFC and companines like that lower there intrest rates so you can afford the payments. I owe 14,000 pay 300 monthly and about 30 goes to loan
How can we save for an Emergency When I Cannot Get a Job?
By: Trice | 10-11-2008
I lost my job 1 1/2 years ago after 25 years. I have been unable to find another position. Since I used to be the "boss," most people assume thats what I would want to be. My husband had been working very hard for us to not loose everything. After the hurricane, we are behind on our house, electric bill, cable, etc. Is there a way to obtain a loan to assist with this or is this even the best course? People assume that since I have a high paying job that we are ok. That is a joke! We had started items before I lost my job that we could have easily paid for, but we are now very strapped for cash. We are not the "right" color for FEMA assistance, we have insurance (3500 deductible), my husband has a job, etc. What are our options? I am very worried it will be a "bleak, black" Christmas at our household. Our families have helped and I am so appreciative but we cannot allow them to help anymore. My husband is very depressed because he feels that he goes to work for nothing because there is never anything left over. (except bills) Please send me any suggestions. Thank you.
I feel I am being mislead and deceived by my ...
By: rudy | 10-11-2008
I feel I am being mislead and deceived by my mortgage company, not sure what to do...Too much to type
Will the banks have to consolidate
By: HDV | 10-11-2008
Will the banks have to consolidate
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