Taking on Debt from a partner
Things can work out alright if you talk through your finance worries
Living with a partner has its ups and downs, as I’m sure you are probably aware, but what happens if they are financially unstable? Sometimes living with a partner can offer a lot of security to many people financial situation, but living with a debt ridden person can become a huge weight on your own time, emotions and ultimately finances. Cutting up credit cards is not going to solve the problem here, there are more factors that are important to consider when dealing with a partners debt.
So what can you do if you are left with a huge amount of debt from a partner?
Partners who run up a huge amount of debt without their partner’s knowledge are becoming an increasingly common occurrence, and this situation is usually the worst type of situation to be in. Not fully understanding the size of a partner’s debt can be hugely problematic once you are made aware of it. The best solution in this case is being open with one another; an honest partnership is a stronger one. This also allows both heads to work as one in solving the problems in hand – brushing them under the carpet isn’t going to work here.
Sit down with your partner and in detail plot out their current financial situation, their in-goings, out goings and any outstanding debt (including their monthly credit card payments, loan and bank charges etc). This will give you a starting platform to understand where possible savings, early repayments and changes can be made to their spending habits. If your partner is a shop-aholic, try and find out what drives them to be over-zealous with their credit card and try and curb their big spending habits – there may be emotional problems with lead to overspending.
If your partner is signed up to any finance agreements with your name on it also, you are liable for ensuring these are paid, so make sure you are clear with what needs paying and assign priorities to the balances with the highest APR first. This will ensure you are making your money work alot harder, and will hopefully get you out of a tight spot. This could save your relationship - and also from potential bankruptcy.
Renewing your Car Insurance Policy
According to Saga, one of the UK’s leading insurance companies, March is the most popular month for renewing car insurance policies. And in statistics recently released, they suggest that nearly three million drivers in the UK have downsized their car in light of the recent ‘credit crunch’ to save money during tough times.
Hunt around for the best car insurance deals
This hardly comes as a surprise considering the costs of insuring a car these days, and the rising fuels prices (although they have seemed to have declined recently…). Saga suggest that around 2.8 million drivers, around 8% of all uk drivers have downsized to save on both fuel and insurance costs during the squeeze – wise choice i think.
The most alarming thing, however, is the finding that nearly three quarters of all motorists have done nothing to reduce their insurance premiums – potentially costing them tens or even hundreds of pounds a year.
Remember that insurance companies will constantly battle with each other to win your business. Always shop around and look for the best premium possible when renewing your motor insurance and you will feel the benefits directly in your bank account. Do note however, that you should always check your new policy before signing, to ensure you will be fully covered. There would be nothing worse than having an accident and finding you aren’t covered for the sake of a few pounds more. Good luck with your bargain hunting!
