So you have decided to take out a guarantor loan because you need some cash in a hurry. You even have secured someone to act as a guarantor. You have done all the research, found the best rates, know what your monthly repayments will be and you are more than happy you can afford it.
But have you told your partner yet?
Any relationship is based on trust. When it comes to a form of debt, people often choose not to tell their partners? Why, well maybe its embarrassment, or maybe they feel they must deal with the debt alone (a really bad idea if you share all other monetary obligations).
Your debt becomes their problem
A recent study has found that across the United Kingdom, people are keeping as much as £41 billion debt secret from their partners. So what implications does this have? Well, if you have debt and pass away or are declared insolvent, did you know that your partner will be liable to settle that debt. It seems a bit unfair to have that hanging over their head when they didn’t know about it in the first place! Not only that, but should they struggle to pay it (a distinct possibility when they knew nothing about it and would not have planned for it), their credit score will be affected negatively.
Always be open in monetary discussions, even those about debt
So what is the best course of action? Well, as we have mentioned above, many people are embarrassed about any debt they might incur, but it is necessary to disclose it to your partner. Not only is it the right thing to do, it’s just fair even though it might be a little awkward at first.
Perhaps get a financial advisor involved to draw up a plan of action when it comes to both parties’ finances. That way, you can both be totally open with each other. Even something like hidden savings should be disclosed, even though you might be trying to surprise him/her with an overseas holiday! Disclosing all your financial obligations will also open a whole new level of trust in the relationship, something that can bring parties even closer together.
So don’t be afraid! Disclose your debt to your partner, it is the right thing to do.