Joint Debt and Debt Review: What Couples Should Know

If you are struggling with debt and considering debt review, it is fair to consider the consequences it holds for your partner. How the debt review process affects you as a couple will depend on your marital status and the kind of debt you both share. At Debtco Group, we guide consumers through the debt review process with confidence. Becoming debt-free can be life-changing for you and your family.

The rise of debt counselling in South Africa indicates a growing need for financial stability. Our team of debt counsellors are registered with the National Credit Regulator (NCR) and deliver result-driven services to help you get out of debt fast. Here are some key signs you need debt review and can benefit from the structure it introduces in your budget. Let’s explore joint debt and debt review: what couples should know.

Married in Community of Property:

Legally, you and your spouse are seen as a single entity when married in community of property. This means that when one spouse applies for debt review, the other spouse must be included in the process. A debt counsellor will assess both partners’ debts, including joint and individual accounts, and take into account your combined household income, to determine whether you are over-indebted. From there, we will create a new repayment plan that is affordable for both spouses.

There are many advantages to debt review for married couples struggling to manage their finances. Look forward to reduced monthly repayments towards debt and protection from asset repossession or other legal actions by creditors. Financial relief can make a big difference to your quality of life.

Married out of Community of Property:

If you and your spouse are married out of community of property, your spouse’s assets and debts are legally separate from yours. This means you can undergo the debt review process without involving them – only your debts will determine over-indebtedness, and only your debts will fall under the new debt repayment plan. In the same sense, you will be solely responsible for managing the newly restructured payment during the debt review process.

Even so, it is important to note that joint debts are a different story. If you and your spouse share debt obligations like a home loan or accounts, you may both have to apply for debt review to have those shared obligations covered in the process. The same goes for non-married couples with joint debt.

Households are falling behind on debt repayments, but there is a way to overcome these struggles. Stop letting debt take control of your life and affect your family. We’re here to help you achieve financial freedom with expert guidance – use our FREE debt calculator to see what you could save each month!