Debt problems come in all shapes and sizes. So do personal relationships. And debt management plans (DMPs) are very flexible arrangements.
The combination of all of these means there isn’t a simple answer to the question about how your DMP will affect your partner, but here I look at the most common questions people have.
Will my partner’s income be taken into account?
In debt management, you show your creditors an Income & Expenditure list – the “difference” between these two figures is basically what gets paid to your creditors every month. There are two options for how the Income & Expenditure is drawn up for a couple.
Use a joint budget
One approach is to use your common household budget with both your incomes and all expenditures being listed. If you have lived together a long while and have children and assets together this is often the most sensible approach.
Here your partner’s income is contributing to your DMP, but it will let you clear the debts faster. They may have been “family” debts anyway, even though they are in your name.
If you have a joint mortgage and want to remortgage, or want to get a first mortgage together, then you both need to sort out “your” debt problem as fast as possible.
Split the expenditure
The alternative is for the joint expenditures (rent, council tax, utilities, groceries etc) to be divided between the two of you.
50/50 is the simple split. But if one of you earns a lot more, dividing them according to your incomes can be more sensible. Then your I&E shows your portion of the joint expenditure and your personal expenses – your travel costs, clothes etc.
With this approach, your partner’s income isn’t going into your DMP. It’s common to feel this is more appropriate if your debts came from before you met.
If you are discussing a DMP with a debt management firm and they want your partner’s income taken into account and you don’t, then talk to a different firm (choose one that doesn’t charge any fees such as StepChange!).
Or you could set up your own debt management – read Is it a lot of work to run my own DMP?
Can my partner carry on paying his own debts?
If you are going for the “dividing joint expenditures” option, then your partner should be left with some money after paying their share of the joint expenses. If this money is enough for them to pay their own expenses and make their own debt repayments then this is fine – and it means they will be able to keep their good credit rating.
But if your partner has a lot of debt and can’t afford to pay their debts and their share of the joint expenses, then they too have a debt problem. Here it’s usually a good idea to see what your joint options are as a couple for your debts.
This could mean you both having a DMP, but if the debts wouldn’t be repaid in a reasonable length of time, you need to consider other options such as insolvency or selling the house.
Sometimes it can be useful for the two of you to have different types of debt solutions because one person has a much smaller problem or it may be possible to protect one person’s credit rating. See When a couple needs two different debt options, which looks at this. It may sound complicated, but once it is underway, you may get a much better result!
What about my partner’s credit rating?
Your partner’s credit score will be damaged by your DMP if you have a financial link:
- a joint bank account;
- a joint loan or mortgage (NB having a second card on your partner’s credit card account isn’t a financial link); or
- your partner has guaranteed a loan you have.
It’s worth looking at your credit report with each of the three Credit Reference Agencies in detail. If you are financially linked, your partner’s name will appear on your report in the Association section. If it doesn’t appear, then you aren’t linked.
Will our house be affected?
When you are in a DMP, it is still possible for a creditor to take you to court for a CCJ and then get a “charge” over your house.
This is rare. See Is my house at risk from a Charging Order? which has statistics.
It is unusual for a creditor to go to court for a Charging Order for a consumer debt such as a credit card, catalogue or loan – the only common exception is guarantor loans where lenders can be very fast to get CCJs and Charging orders over the guarantor’s house.
This is slightly more likely to occur if you owe a lot to a creditor and you are making low payments to your DMP for a long while. If your DMP seems likely to be very long-term and you have equity, then it would be a good idea to look at other possible debt solutions instead.
If it does happen, the charge is only on your share of the equity. Your partner’s share cannot be affected.
I’m moving in with my partner, what happens to my DMP?
Most of the time when you move in with someone your expenses will decrease. You should tell your creditors and show them a new Income & Expenditure sheet (see above for the two ways of drawing this up for a couple) and start paying them more…
But I wouldn’t rush into doing this – give it a few months so you know this is the right move for you. Then you will also have a good feel for the costs of living together and you are both happy with how much you are each paying towards the bills. At that point you can look at how your DMP should be changed.
Sometimes your expenses will increase – if you had been living with your parents for free, or if your new partner is going to be losing a lot of benefits when you move in.
Here you need to redo a new Income & Expenditure sheet straight away and reduce your DMP payments – your creditors may not like it but you don’t have an option.
If this means your DMP is no longer sensible, you may have to look at options such as bankruptcy or a Debt Relief Order.
Will my new partner’s house be safe if I move in?
Yes. If the house is not in your name, it cannot be at risk from your DMP.
Will it make a difference if we get married?
This won’t change your DMP at all.
Getting married doesn’t affect the legal liability for your debts, it won’t link your credit ratings and it won’t change the amount being paid to your DMP.
Do I have to tell my partner?
Legally, No you don’t.
But practically, unless you expect your DMP to be a very short term temporary arrangement, there are very good reasons why you should tell your partner.
- their credit rating may be affected (see above) or you may be turned down for joint credit such as car finance.
- if you have a joint mortgage, your partner is very likely to find out when your current mortgage fix ends and you look for a new one.
- in the DMP you may need to make a few lifestyle changes. Say no to going to a friend’s wedding abroad, start taking sandwiches into work etc. Managing a budget when you want to get rid of debt takes commitment. It’s hard to do this if you are trying to pretend that nothing unusual is happening to your partner.
- your partner may find out by accident in a couple of years time. Taking a phone call from a creditor, or seeing a letter. or they may inherit some money and want to buy a house, but your DMP may prevent that. At that point it isn’t just your debts your partner may be upset about, it’s the fact you have concealed them.
So although telling your partner now may be awkward or even difficult, the alternatives are usually worse.
And whatever your situation…
Talk it through with your partner. Emotional support can be just as important as financial help.
There are more important things than money and debt – don’t let these ruin your relationship.
Why people worry about starting a DMP
A Guide to Debt Management (DMPs)
Could a Debt Relief Order help you?
Sarah says
Hi
My partner had a number of defaulted debts which have recently been paid off. This is not yet reflected on his credit file so he will have ‘bad credit’ for a while longer.
We are planning for him to move in with me. I know that my credit is only affected if we have any joint financial accounts – we don’t. However I want to know whether this is the case if he registers on the electoral register with my address?
He will obviously need to get on the register at some point to improve his credit score.
Thanks
Sara (Debt Camel) says
Your credit rating will not be affected if he is on the electoral roll at the same address as you – just don’t have any joint bank / loan accounts.
Maz says
Hi
My husband is looking at getting a dmp as he is struggling to pay credit cards off. Will this affect his credit score to get a mobile phone contract or if we move when the estate agent does a check on us to rent a house?
Thank you
Maz
Sara (Debt Camel) says
Yes it will affect his credit score, see https://debtcamel.co.uk/dmp-credit-rating/ for details.
This article https://debtcamel.co.uk/worried-dmp/ looks at the worries peiople have about a DMP, including the effect on credit ratingss: https://debtcamel.co.uk/worried-dmp/.
Gemma says
HI
I did a debt relief order 4 years ago and now want to buy a house with my mum is this possible?
Thanks
Gem
Sara (Debt Camel) says
Hi Gemma, legally you can buy a house now, however you are likely to find it very difficult to get a mortgage company that will lend to you at a reasonable rate whilst the DRO is still showing on your credit record, which will be two more years. You need to talk to a mortgage broker about this.
John says
I have debts in my name only and am considering bankruptcy. However, my wife purchased the house in her name only( 10 years ago) will the house be at risk of I do go down the bankruptcy route?
Sara (Debt Camel) says
Hi John, this article https://debtcamel.co.uk/partner-bankrupt/ is mainly aimed at a new relationship, but have a look at the section there about “beneficial equity”. The Official Receiver will be interested in whether you have contributed a lot to the house even though it is in your wife’s name. This can be a complicated area and it’s a good idea to talk to a debt adviser about this and bankruptcy in general.
Robs says
Hello I hope you can help myself and my boyfriend are in the proces of applying for mortgages he is currently on a DMP which is completed April 2018, if we were to apply for a joint mortgage (me being main applicant) wouldn’t this increase our chances of being accepted as oppose to him being main applicant
Thankyou
Sara (Debt Camel) says
I doubt whether you will get a joint mortgage with you being the main applicant. It doesn’t realy matter who is the main applicant – both parties to a mortgage are equally liable for making the payments. See https://debtcamel.co.uk/dmp-mortgage/ for more about DMPs and mortgages.
Ian says
I owe money to a credit card company which I can’t afford to repay. The company has asked for an income and expenditure breakdown to back up my claim that I can’t repay at the rate they want. Am I correct in saying that I do not have to declare my spouse’s income?
Thank you in advance.
Sara (Debt Camel) says
That’s correct, but you should divide the expenses up between you according your income. So if she earns twice as much as you, you should be paying 1/3 of the rent, bills etc. But if you earn the same amount divide them 50/50.
Ali says
My partner is on step change and we want to get married…do I become liable for any of his debts and would his repayments change at all
Thank you in advance
Sara (Debt Camel) says
Congratulations! Marriage doesn’t change liability for his debts. And if you have been living together so far it shouldn’t change his monthly repayment. If you are just moving in together then obviously his expenses will change so that could affect his DMP.
lee says
Hi
I am in the process of applying for a DMP, the house me and my wife have are in her name as is the mortgage, but we have been financially linked previously when we applied for a joint mortgage (it was rejected) will the DMP now affect my wifes credit score as were we previously linked in an application?
Sara (Debt Camel) says
Hi Lee, so the joint application was your only connection? You don’t have a joint bank account at all?
Do you mind me asking a couple of questions about the DMP – how long do you expect it to last? Which DMP firm are you using?
lee says
yes the joint application was our only joint connection, no joint bank accounts
Stepchange – they have said if there plan is agreed it could take 3 years 11 months to pay off my debt
Sara (Debt Camel) says
The DMP sounds good! How long ago was the joint credit application?
lee says
thanks hopefully my creditors will agree to it. Application was beginning of November 2016
Jane says
Hi, I have several debts from before I got married all debts are in my name. I’m now considering going bankrupt. I phoned a company today who said there was a better option than bankruptcy it would clear the debt in 4 years and cost £30 per week even though were currently in receipt of benefits due to our Son being disabled and my husband losing his job. Anyway they said that my husbands benefit plus the benefit for my son would be included as the income even though these are my debts so you have any advice. They said that bankruptcy isn’t always accepted and I could end up paying more because of my sons disability money.
Sara (Debt Camel) says
I don’t know who you spoke to but I suggest you talk to National Debtline on 0808 808 4000. It is incredibly rare for bankruptcy to be rejected – most of the cases that are are for people from abroad coming to England to try to go bankrupt here…
If your only income is from benefits, you would not have to make any weekly or monthly payments in bankruptcy. But a Debt relief order could also be an option for you – National Debtline can advise.
Jane says
It was Bankruptcy Scotland I spoke to. I received a Simple Procedure Notice Of Claim today so I’m worried sick, they didn’t really put my mind at ease to be honest.
Sara (Debt Camel) says
OK, I am not sure who that firm is – National Debtline have Scottish experts so I suggest you speak to them: https://www.nationaldebtline.org/S/Pages/default.aspx. Sorry, there is no point in me guessing, it wouldn’t help you at all. Good luck!
Amanda says
I have a debt recovery company pursuing me to pay a water bill from my previous address. I now live with my partner and he is NOT named on the debt as it was before we were together. This company is demanding the whole house income be divulged to them. I am not related to the two other people in the house that work. They are my partners sons. I am informed that they are not allowed to ask for any other income than mine as the debt is in my name. Is this true? And will the courts accept my offer of payment due to almost nil income? Thanks
Sara (Debt Camel) says
Do you have a CCJ for this debt? Do you have other problem debts as well?
Paul says
Hello,
If I include my partner income into my I&E , would this affect her borrowing in the future? Is it going to be possible for the creditors to cross check the I&E information with her future loan applications?
(all unsecured debts on my name,no joint loans or accounts)
Thank you
Sara (Debt Camel) says
If your partner intends to borrow in future while your DMP is continuing, it’s probably simpler to use the “split the expenditure” approach described above. Then if your partner applies for a loan, they can supply their income and the split of the expenditure that matches what is in your DMP. Typically you would each be paying half, so your DMP has half of joint expenses (rent, council tax, utilities) and all your individual ones (your season ticket, your clothes etc) and so does your parter’s loan application.
It’s not really a question of whether a lender would be able to cross check a future loan application against your DMP I&E – that is unlikely even if the same lender was involved. It’s more a question of making sure you are paying a sensible amount to your DMP and that your partner’s loan application is realistic about their expenses.
Paul says
Thank you for the fast reply,
My DMP advisor suggest to include my partner income in my I&E form, this way the creditors are more likely to stop interest and that there will not accept “split the expenditure” approach and will ask for full household income anyway. If this is the case, do I have to provide my partner details or just her income?
I trust you more than any debt advisor out there!!!
Sara (Debt Camel) says
who is your DMP adviser?
If you do this, you also need to include all your partner’s expenses as well – otherwise it will look as though the two of you have a lot more spare money than you do.
Paul says
Debt advice foundation is helping me to set up my DMP.
I dont want to involve my partner into this in any way and I am not sure If it will be possible for me to make any arrangements with the creditors if I go with “split the expenditure” approach ,my status is living with a partner and we have one dependant under 14.As I said, the debts are on my name and unsecured.
Also do I have to give her name and details or just her income If I decide to do full household income I&E, thanks
Sara (Debt Camel) says
“I am not sure If it will be possible for me to make any arrangements with the creditors if I go with “split the expenditure” approach ” is this because DAF have worried you about this or because it will mean that you can’t pay much to your debts?
If your partner does not want to be involved, there is no legal reason she is obligated to. But if that means it will take you a very long while to clear your debts, you may need to look at your other possible debt solutions.
I would not be worried about giving her name and details, but I would be worried if this means you are paying a lot more to your debts that she is happy with as she is left with no spare money. If she wants to help you clear your debts asap that’s great, but that has to be her choice. Does she also have debts but they aren’t a problem?
Paul says
It will take me 8-10 years to clear my debts with her on board or without .The amount I will pay monthly will be the same either my partner income is on my I&E or not.When I told DAF that I am not obliged to include her income they said that the creditors are not obliged to stop my interest and will be in my favour if I provide them with the full household income otherwise they will not accept my proposal. DAF are really nice and they are helping me a lot, I just need a second opinion about this and yes my partner has her own debts and they are up to date and not a problem.
Debra says
Hi. My ex husband and I have credit card debts and also a balance due after repossession/ subsequent sale of old family home. I can only afford £1 a month to my creditors (have done so for 9 years). The house is being repossessed and I will not be able to afford to repay anything owing on that and my only option is bankruptcy. My question is I remarried two years ago, will my new husbands income be used to assess what I can/cannot afford to pay to my and my ex husband mortgage?
Sara (Debt Camel) says
Hi Debra,
when you go bankrupt, you are asked for your partner’s income. This is to make sure he pays his fair share of the current household bills. Do you both earn about the same or are they very different amounts?
Are you still living in the house that is being repossessed or did you leave it some time ago?
Debra says
My new husband has mortgage, credit cards X2 and a loan and he is the only earner. My income is child tax credits and child benefit. Due to my PTSD I am unable to work. My husband earns £1,300 take home. But it would be unreasonable to expect his earnings to be paid towards the debts accrued by my ex and myself ten plus years ago. I was advised to leave the old house five years ago for my safety due to threats being received from my ex.
Sam says
Hi Sara,
So i am in a self managed DMP and hsve recently got married. Due to financial difficulty at the time she paid for wedding and lent me some money (dont ask why) in agreement i pay the rent for a long time to cover this money she put forward.
She doesnt know im in a dmp and dont want her to find out. I do not want her income to be added to this etc and not wnat her involved.
Is this possible?
Sara (Debt Camel) says
How long has your DMP been running? when will it end? Can you afford to carry on with the payments?
Sam says
Been on a DMP 2 years and yes can manage. Will end in 12 years. But can manage all the way including saving few £ each month.
What do you recommend? I dont want her to pay rent etc. She pays for food etc
Sara (Debt Camel) says
Then you can just carry on making the current repayments.
I have to say it is not a great start for a marriage for someone to be concealing a long term debt problem for their partner. The next 12 years may not be all simple, that’s a long while to hide this sort of situation that can result in letters arriving and affect your credit rating. But it’s your choice.
Mark Palmer says
We share names on a mortgage and my husband has huge debts he can’t pay. Assuming I’m right in that if he solely goes in to a DMP it will affect my credit score, my mortgage deal runs out in three years. Would I then be able to get a new deal or would it adversely affect me so I’d get a really poor deal next time? Am I also right in that I can remove him from the mortgage before he went in to a DMP as we are still married and he’d still be living there even though I could prove I have always paid all the bills and mortgage (not incl his debts). Is there any way round this? Thank you for any advice you can provide.
Sara (Debt Camel) says
If your husband has huge debts he can’t pay, then the defaults and missed payments are going to affect your credit record as you are financially linked because of the mortgage. It isn’t so much the DMp that is the problem, that is more a symptom of the fact his debts are too large to be paid.
When your fix ends, you are likely to find it very hard to remortgage with a different lender. But usually you can get a new fix from your current lender.
You can’t just remove his name – you would require a new mortgage in your name to repay the current one. This would (a) be expensive as you are exiting your current fixed rate early and (b) your lender is very likely to refuse unless it is VERY obvious you can pay the mortgage and all the other household bills very easily from your salary alone.
Dann says
Hi
My husband has now told me he has £25k of credit card debt, and starting a DMP for 13 years, we have and will not default on mortgage and utilities but we’ll need to re mortgage in 5 years when our fix rate ends. Will his DMP effect this?? Or effect anything on the house?
Sara (Debt Camel) says
That must have come as a shock to you. Who is he talking to about a DMP? A 13-year DMP is a very long time… If he expects things will improve, so he can pay off the debts sooner, then this may be a good option for him.
His DMP will result in a lot of defaults on his credit record. This will also affect your credit record as you have a joint mortgage. When your current fix ends, you should be able to get a new fix with the same lender, but you will probably find it very difficult to remortgage with anyone else.
Are you likely to need to move house in the next 13 years?
Emma says
Hi,
I am about to start a DMP but but husband doesn’t know. It will take around 5 years to pay my DMP. Currently the house in his name only and is due to be renewed in 5 years. We have a joint bank account – that isn’t used. I’m thinking of closing that down ASAP. When the mortgage is up for renewal will my dmp affect this renewal. He is likely to stay with the same bank for the mortgage offer…
Sara (Debt Camel) says
If you close the joint account your DMP will not affect your husband’s credit record so should not be relevant to his mortgage renewal.
However as the article above suggests, I think you should talk to your husaband. 5 years is a long while to be concealing something important from him and he may find out.
Annie says
I am planning on applying for a DMP. My husband and I have a joint savings account (mostly his money). He has no idea that I have a lot of credit card debt. Will the money from our joint savings account remain untouched when I start the program?
Sara (Debt Camel) says
That can’t be guaranteed.
I am sorry but you really should tell your husband about this. Your DMP is going to wreck your credit record and leave you with very little spare money – he may well find out at some point, better to be up front and tell him your problem and how you plan to solve it.
Steven says
Hi. My partner does not know about my DMP. We are living together in her house and want to move and add me to the deeds. She has a small mortgage which she plans to keep in just her name. We have no joint credit arrangements and I will not be on the mortgage. Can I still be added to the deeds
Sara (Debt Camel) says
Very unlikely. A mortgage company will normally insist that anyone “on the deeds” is also on the mortgage.
Jon says
Hi my wife has a DMP in her name which I have just found out about. It’s shows up in my credit report but apparently its not in my name, how is this possible
Thanks Jon
Sara (Debt Camel) says
do you have any joint debts, eg a mortgage or a loan?