Sep 29, 2023
There are risks to sharing your spouse's debt: expert
, BNN Bloomberg
What to know about sharing a spouse's debt, and the risks of it
VIDEO SIGN OUT
There are risks to taking on and sharing your spouse’s debt, according to one personal finance expert who suggests there are other, less risky ways for married couples to support each other financially.
Scott Terrio, manager of consumer insolvency at Hoyes Michalos Licensed Insolvency Trustees, told BNN Bloomberg that there are no benefits to taking any debt from a spouse – and banks are the main party that benefit from such scenarios.
“Banks are eager to have co-signers and two names,” Terrio said in a Thursday interview.
Despite the risk of taking on debts, Terrio explained that there are ways to help a spouse with their debt without taking on full responsibility.
“Marrying someone with debt doesn’t mean you take on the debt, and divorce doesn’t divorce you from joint debt either,” he said.
For married couples looking for options to manage debt, Terrio suggested taking out a joint loan in order to pay, which comes with implications and some benefits, or working on a voluntary or informal payment plan together.
Check out the full video at the top of the article to learn more.
Scott Terrio, manager of consumer insolvency at Hoyes Michalos Licensed Insolvency Trustees, told BNN Bloomberg that there are no benefits to taking any debt from a spouse – and banks are the main party that benefit from such scenarios.
“Banks are eager to have co-signers and two names,” Terrio said in a Thursday interview.
Despite the risk of taking on debts, Terrio explained that there are ways to help a spouse with their debt without taking on full responsibility.
“Marrying someone with debt doesn’t mean you take on the debt, and divorce doesn’t divorce you from joint debt either,” he said.
For married couples looking for options to manage debt, Terrio suggested taking out a joint loan in order to pay, which comes with implications and some benefits, or working on a voluntary or informal payment plan together.
Check out the full video at the top of the article to learn more.
