Who you choose to marry is probably one of the most important decisions you will ever make. When it comes to planning a future with your significant other, debt review and marriage are topics that play a big role in your financial lives together — and, unfortunately, life does throw out some hectic curveballs.
Financial difficulties cause problems in many relationships, especially when both partners in a relationship share a big financial obligation like a bond. According to National Credit Regulator (NCR) data, only 49.2% of credit active consumers are up to date with their payment.
How Joint Financial Obligations Affect Debt Review
When your partner is over-indebted, do you face debt review together to better your financial situation?
According to the chief executive of Debt Rescue, Neil Roets, if one partner in a marriage needs to undergo debt review, the other partner has to as well. This is because they are lawfully seen as one entity if they are married under community of property. To be identified as separate entities, they should enter into an antenuptial contract before marriage.
If a couple goes into debt review together, it may end up being a saving grace for one and a burden for the other, especially seeing as though both parties will get flagged at credit bureaus and won’t be allowed to apply for loans or take out more debt.
Also keep in mind, individuals who are not married but still share financial obligations, such as a bond, will have to undergo debt review together as it’s impossible to put half a property under debt review.
Want to Know More About How Debt Review Affects Your Spouse and Marriage Types
What happens when you go under debt review?
Consumers who are over-indebted can apply for debt review. During the debt counselling process, a debt counsellor will take a look at your outstanding debt and create a financial plan to help you repay your debt while still ensuring you have enough money to cover your other expenses.
Your instalments and payment terms with credit providers will be negotiated to minimise your stress. Also, while under debt review, you will be legally protected by the National Credit Act (NCA), which means creditors may no longer hassle you for payments.
How long does it take to become debt free?
The road to financial freedom varies dependent on the amount of debt and the amount available to repay it. Although for some it may be a long process, it is an important step to take, as it may be the only way of getting out of the debt.
Contact Debt Rescue to assist you on your way to financial freedom.