15 February 2007
Following the vast amount of money most consumers probably spent in the run-up to Valentine's Day yesterday, one bank is advising couples to decide now on who gets what if they part ways in the future.
According to a survey from Alliance & Leicester, 87% of people make major purchases with their partner but only 4% have agreed what happens to the items if they split up. Just 1% of couples had a written contract detailing who was entitled to what in the event of a break-up and only 3% had some sort of verbal agreement.
Research from the bank also revealed that it costs £13,500 on average for a person to set-up their life again following a break-up and with debts, financial commitments and expensive purchases to think about, many will turn to a personal loan to solve their fiscal worries.
Richard Al-Dabbagh, Senior Personal Loans Manager at Alliance & Leicester, commented: "While it is hardly romantic to discuss what will happen to jointly bought items when the relationship ends, it could save a lot of trouble, heartache and cost if that uncomfortable conversation takes place.
"The financial implications of starting again after a split can be major and if funds are needed, a painless way of getting those could be to get a personal loan," Mr Al-Dabbagh continued.
"To make their budget go further people should look around for a good deal and not just rely on their big-name high street bank to give them a good deal - it could end up costing them £700 more in interest payments."