Many couples share everything including their debts. If one spouse has accumulated some debt on a credit card account, the other may want to assist with repayment.
An easy way to accomplish this is to transfer the debt onto a lower-interest credit card account held by the non-debtor partner. For this approach to be effective, each person must have a separate credit card account and the spouse taking on the debt should not already owe a large amount of money.
If the spouse receiving the debt has a good credit score and does not already have a credit card account, he or she should comparison-shop for a card that features a low interest rate for balance transfers. The spouse should then apply for an account in his or her name with no cosigner. In the meantime, the spouse with the credit card debt should contact the card provider and find out how to transfer the balance to another card.
In many cases, the credit card company will handle the transfer, moving the debt balance to the new card. In others, the provider of the new card will write a check to the new account holder for the other account balance.
This check can be signed over to the spouse with the debt, who can use it to pay the credit card balance. Alternatively, the new cardholder can deposit it into his or her bank account and write a personal check to the spouse to repay the balance on the other card.
It Is The Responsibility Of The Spouse…Well Most Of The Time
The spouse taking on the debt should make regular payments on the account to prevent unnecessary interest and other charges from accruing. If possible, the card should not be used to make any purchases because this will increase the amount of interest charged. Once the debt is repaid, the card can be used as a normal credit card, with the balance being repaid in full within the statement period whenever possible.
Another way to handle credit card debt is to manage it without involving a spouse. Several debt management methods are available to UK residents who have debt from credit card use. The individual may be able to negotiate an informal repayment plan with the card provider or enter a formal debt management program administered by a third-party company that charges a fee.
A debt consolidation loan is another way to handle credit card and other debts. All debts are combined and a loan is used to repay each one in full. The loan features a lower interest rate than the debts carry individually, making it an affordable alternative. The debtor repays the loan in installments over a designated period.
Trying to help a spouse with debt is a way to get household finances back on track. If it is not possible to transfer a credit card balance to another card featuring a lower interest rate, explore the debt management options available to the owing spouse. A consolidation loan is just one of the options that enables a spouse to manage debts without burdening a partner.