Debt can be a complicated and confusing subject at times, to help we've answered some of the most frequently asked questions about debt.
Even if only currently considering borrowing money, it's worth understanding the ins and outs of debt before you owe any money, so you know what will be expected of you.
If you have a joint credit agreement with your partner then you're both responsible for paying off the whole debt. This is known as 'joint and several liability'.
For a credit agreement to be joint and several, you and your partner must both have signed a form required by the Consumer Credit Act. If you haven't signed an agreement like this, you aren't liable for your partner's debts.
Joint and several liability can also apply if you are in arrears on rent payments on a joint tenancy, if you are in arrears on a joint mortgage, as well as on council tax payments for couples and water/sewerage charges on properties which you occupy jointly.
If you are in any doubt, talk to the individual creditor to get a clear picture about whether or not you are liable for the debt.
Having large debts does not necessarily mean losing your home. There are many different ways of dealing with debt, and which one is right for you will depend on a number of different factors, but not all of them mean you will have to lose your home.
If you file for bankruptcy, losing your home is a strong possibility, but other debt solutions like an IVA or a Debt Management Plan may mean you can keep your home and pay off your debt. It is important that you speak to a qualified debt advisor to find out what your options are - charities like StepChange and National Debtline can help.
It may be tempting to focus on your biggest debts when you're trying to decide what debts to repay first, but it's important to pay off your debts according to which ones will have the most serious consequences if you don't pay.
High priority debts include:
The type of action your creditors can take is dependent on the type of debt you have accumulated and how long you have delayed paying back your debt.