Do Joint Accounts Affect Debt Review Application?

Debt review has been a lifeline for many struggling consumers facing over-indebtedness. If you’re wondering where to get help with debt – you are in the right place. At Debtco Group, our team of debt counsellors are registered with the National Credit Regulator (NCR). We assist South Africans who are trying to improve their debts and enjoy financial freedom. But what about shared debts? Let us answer the question “Do joint accounts affect debt review application?”

To understand joint debt, debt review and what every couple should know, we first need to look at what joint debt is. We can then understand the impact it might have on your debt review application.

What is Joint Debt?

Joint debt is any financial obligation shared between two or more people. All the people who are listed on the debt are equally responsible for repaying it. Essentially, all parties who co-signed for the debt are liable. This might be joint debt with your partner, a family member, or a friend, and could range from a home loan (mortgage) to a credit card or a store account.

In theory, this can seem like an easy way to access credit when it is needed. But what if your individual finances take a turn for the worse, and you want to enter debt review?

Joint Debt and Debt Review

Are you entering debt review when married in community of property? You and your spouse are both automatically and equally responsible for all the debts incurred – it does not matter who signed the agreement. If one spouse applies for debt review, the joint debt will be included in that application, and both spouses will be affected.

Married out of community of property, or dealing with joint debt between friends? Joint debt must be declared during your debt review application. If you are entering debt review and the co-borrower is not, the creditor may hold them liable for the full debt, and their credit score will worsen with each missed payment. Whatever you are facing, there are many benefits of debt review to be aware of.

An approach worth considering is that all parties sharing the debt enter debt review. This will mean full protection from creditors, and the chance to repay the debt according to your financial means. Wondering if debt review is the right choice for you? Here are the top warning signs of overwhelming debt.

Financial Relief through Debt Review

If you are in a situation where your debt is taking a toll on your life, it is time to make a change. Debt Review provides instant financial relief and keeps you safe from the legal actions of creditors. Need help with debt? With our assistance, you are one step closer to financial freedom.