Debt Responsibility: Looking after somebody else’s debt

There’s a big concern that if you’re married to someone, or even in a long-term relationship, that you inherit their debt responsibility. Certainly, right away, we can advise you that this isn’t the case for Australians, but may be so in other countries.

If there’s creditors which are demanding payment for debt created by someone you know, it’s wise to remember what your individual obligations are.

At times you are responsible

Here’s a list of the most common times that you’ll find that your personal involvement is necessary for someone else’s debt.

  1. You’ve signed a Guarantor agreement. We NEVER recommend these. Ever. Because now you’re just as responsible if the other person stops paying.
  2. Joint accounts. Another case of joint-responsibility. Sure, the other person was paying 100% but as you’re on the account, you’re just as liable if they stop paying.
  3. Your account but someone else is doing the spending. Absolutely a bad idea! They’ll have no legal obligation to pay the money back, and it 100% falls on you. No excuses here. “But they maxed out the credit card” isn’t something debt collectors will want to hear.
Lock down your accounts so only *you* have access to it

All lenders, if you ask them, have to give you information regarding whether you’re responsible for the debt. Check to see if your signature is there.

Getting help

There are ways out of this. You don’t want things to become more complicated than what they are already.

Firstly, cease having joint accounts. Go solo and steer the ship yourself. Take full responsibility for your debt only, instead of digging a bigger hole that you can’t get out of.

If you want to help someone paying off their debt, then consider having that debt transfer to you. Not advisable, but sometimes the only way out. This can avoid collections issues in the future.

Moving forward

We can help you. We’ll assist in taking off the burden of paying someone else’s debt. Our options are very effective for most people.

Get in touch with us today. There’s no obligation. If you’re being chased by a nasty debt collector, then we’re ready and waiting!

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