According to a survey of separated British adults, published last week by Resolution,
28% say they turned to loans, overdrafts or credit cards after a breakup
16% admit to receiving or asking for help from friends or family
26% had to move in with friends or family after a split.
The research also reveals that people with children fare even worse.
The average british household income is £32,000 meaning that there isn't a lot to go around. This, combined with court costs, the huge financial burden of establishing a separate household as a single person and child care and maintenance costs, put many divorcing people at high risk of debt.
Some sensible advice for separating couples is:-
- Don’t bury your head in the sand - keep an eye on the finances.
- Talk to your bank - they can’t help if they don’t know what’s happening.
- Talk to your mortgage lender - if one party is buying the other out, the mortgage company needs to know as they may not think one salary can afford the mortgage. Chat to a mortgage broker as some lenders are more flexible than others.
- Any debts held jointly are your joint responsibility and you are both responsible for paying them off.