Over two million Brits have had an ex rack up debt on a shared credit card – collectively leaving them £1.2 billion in the red
As well as average credit card debts of £457, ex-partners have run up £313 on joint account fees and £327 on shared online shopping accounts
Over two thirds of those who have never cancelled a shared financial product (68%) broke up more than five years ago
One in five (19%) didn’t know anything about their other half’s financial history before jumping into a shared account
Half of those who have shared financial products with a partner (50%) believe doing so has had a significant impact on their own personal finances – three in ten (30%) actually saw their credit score drop.
Over two million broken-hearted Brits are being left in debt by ex-partners, who are chalking up £1.2 billion in credit card debt between them, according to Uswitch.com, the price comparison site and switching service.
On average, ex-partners run up credit card debts of £457 on joint cards. Clearing the debt takes four in ten (38%) consumers more than half a year. But for some, the debts last longer than the relationship – one in ten (11%) take more than five years to get back in the black.
However, this is just the tip of the iceberg. Exes have incurred debt on a range of joint financial products, including an average of £463 in mortgage debt, £313 debt on joint current accounts and £327 on shared online shopping accounts.
Things could be even worse for those who don’t cancel joint accounts and financial products after a breakup. Despite the potential consequences, more than two thirds of those who have shared a financial product with a former partner (68%) say it was still open over five years after they separated. Almost a third (32%) of those who shared a PIN code with a former partner say they didn’t get round to changing it and a fifth (19%) who shared a credit card say the card remained active after they split up.
The research also reveals that Brits aren’t talking about their finances before taking out joint financial products. One in five (19%) of those who have shared a financial product said that before jumping into a shared account they didn’t know anything about their other half’s financial history.
But while sharing products and accounts can be an easy way of managing your money – not to mention a significant step in the relationship – there can be dire consequences from sharing financial products, especially for those who haven’t looked into their partner’s financial past. Half of Brits (50%) who have shared a financial product with an ex believe that doing so has had a significant impact on their own personal finances and three in ten (30%) actually saw their credit score get worse after sharing a financial product with their partner.
Nicolas Frankcom, money expert at Uswitch.com said: “When it comes to finances, only fools rush in. Money might not be the sexiest pillow talk, but not addressing it can lead to financial, as well as emotional, heartache further down the line. Being left with debts that last longer than the relationship only rubs salt in the wound after a breakup.
“The reality is that couples can remain financially linked by their credit report long after a relationship breaks down and an account has been cancelled. If you do nothing else, make sure you keep a check on your own credit report so you can spot anything unusual on it. If you do break up with your partner, make sure to close all shared accounts and contact each of the three main credit agencies to remove any financial links between you and your ex.”
Katherine Moss
Phone: 020 3021 5893
Email: katherine.moss@uswitch.com
Twitter: @uswitchPR
All research referred to was conducted online by Opinium between 31st March and 2nd April 2015, among 2,459 UK adults who live with or have previously lived with a partner.
When asked “Thinking about the accounts or financial products you shared with your partner, did your partner ever run up debts or incur fees on that account?” 144 respondents said “Yes, on a credit card’. This is 5.8% of the total sample. According to the ONS population projections for 2013, the estimated UK population aged 18+ was 50,371,000. For the purpose of calculating a national figure, Uswitch.com has used the fact that the research revealed that 84% of adults had lived with a partner. Therefore, the number of people who have lived with a partner is 0.84*50,371,000 = 42,269,000. 5.8% of 42,269,000 = 2,451,602. The mean credit card debt stated by product was £913. For the calculations, Uswitch.com also assumes exes were responsible for half the debt. Therefore the collect debt was £456.50 x 2,451,602 = £1.119 billion.
When asked “How much would you estimate the total debts or fees to have been on the account/card?” the mean mortgage debt was calculated at £925, joint current accounts £625 and online shopping accounts £654. Given the assumption that exes were responsible for half the debt, the debts racked up by exes are £462.50 (mortgage), £312.50 (joint accounts) and £327 (online shopping accounts).
When asked “Thinking of those things you have never cancelled or divided that you shared with your ex-partner, how long ago did you break up with them?” for at least one product, 68% said “5 years +”,
When asked, ‘Thinking about the partner you shared credit accounts/joint accounts/cards with, did you know anything about their finances?’, 4% answered, ‘No –we didn’t want to talk about it but I knew it was important’, 7% answered, ‘No – I didn’t think it was important to talk about’ and 8% answered, ‘No – It just didn’t come up’. 4+7+8=19%
When asked “Thinking about any finances you’ve shared with your previous or current partners, how much of an impact do you think this can have on your own personal finances?”, 50% said “Significant impact”
Of those who checked their credit score before and after sharing financial products with a partner (9%), when asked, “Did you notice any impact on your credit score following sharing a financial product with a partner?” 30% said “Yes – my credit score got worse”.
When asked, ‘If you had to help pay off this debt, how long do you estimate it took you/will take you?’ 12% answered, ‘Less than 1 year’, 15% answered ‘Up to 5 years’ and 11% answered ‘More than 5 years’. 12+15+11=38%
When asked “Thinking of the different things you’ve shared with previous partners, how long did it take you to cancel or divide each of them after you split up?”, 32% said ‘Never cancelled or divided: Pin code”, and 19% said ‘Never cancelled or divided: credit card”.
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
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