How can joint debts affect me?

Joint credit agreements

When you take out a joint debt, like a personal loan:

• You agree to pay back the whole debt if the other person does not pay
• You are responsible for the whole amount borrowed
• You must repay the whole amount if the other person does not

This is known as ‘joint and several liability’.

Joint bank accounts and overdrafts

Joint bank accounts give you and someone else shared access to your money.

For example:

• A couple may use a joint account to pay household bills and living costs
• A child may share an account with an aging parent to cover care costs

Some joint accounts come with an overdraft. This lets you borrow money in the same way as other unsecured debts.

There is always a risk to sharing money.

• You are both responsible if the account is overdrawn
• Either person can withdraw whatever money they want from it

Think carefully before opening a joint bank account with someone. Even if you are in a relationship.

Some couples prefer to keep their own bank accounts and just transfer an agreed amount into the joint account to cover shared costs.

Struggling to pay a joint debt?

Does being married make me liable for my partner's debts?

Marriage or a civil partnership does not make you responsible for your partner’s debts.

• Any debts or financial obligations that your partner has in their name stay in their name only
• Responsibility for their debts does not pass to you

Joint credit cards

Credit cards cannot be taken out in joint names.

The main cardholder is responsible for paying off the credit card debt in full.

Sometimes you can have an additional cardholder.

• They get their own card to spend on
• They share the credit limit on the card

But they have no legal responsibility to pay towards the debt.

How do joint debts affect my credit file?

Your credit files will be linked together or ‘associated’ if you have joint debts.

This means:

• Lenders can look at the other person’s credit history when you apply for credit
• Even if you apply in your name only

The payments you make towards joint debts affect both credit files.

• Missed payments are marked on both credit files
• It does not matter who missed the payment
• Both people are responsible for making payments

Having a good payment history towards joint debts helps both people named on the account.

It shows lenders that you both pay your debts on time. This can make it easier to get credit in future.

Help and advice

We can help if you have a joint debt and are struggling to pay.

Use our online debt advice to find the best options for you.