Separation In Scotland equals Debt Misery

Separation In Scotland = Debt Misery

Data from personal debt solutions provider newtomorrow shows that 17 per cent of separated debtors were made bankrupt while 29 per cent entered into a protected trust deed, which sees a proportion of debt paid off and the remainder written off after three years.  However, married couples are least likely to enter insolvency, with only 9 per cent being made bankrupt and 22 per cent signing up for trust deeds.

Managing director, Ian Wright said “Financial troubles were now a major concern in relationship breakdowns, with previously shared household bills becoming a sole responsibility.  With the divorce rate so high in the UK, more and more people are finding themselves in financial difficulties after separation”.

Our view

Based upon simple laws of probability, an unmarried couple are likely to be younger and therefore just starting out on life.  It is no surprise that they will have higher debt in mortgage, car finance, loans and credit cards and therefore, debt management is a real issue when separation occurs.

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