Divorce Fuelling Debt Crisis
Below is a MRR and PLR article in category Society -> subcategory Divorce.
Divorce Driving Debt Crisis
Summary
A recent report highlights how the rising divorce rates in Britain are significantly contributing to increasing debt levels.
Debt Free Direct indicates that the breakdown of marriages is a key factor in financial struggles, often forcing individuals to seek debt consolidation loans post-divorce.
Article Body
The increasing divorce rate in Britain is playing a crucial role in the nation's mounting debt crisis, as revealed by a recent report.
Debt Free Direct has identified the dissolution of marriages as a significant contributor to financial difficulties, suggesting that many people opt for debt consolidation loans after finalizing their divorce.
The agency reports that divorced individuals are 33% more likely to face bankruptcy, with women particularly at risk. Statistics show that women are 14% more likely to encounter financial distress and 26% less likely to qualify for an individual voluntary arrangement, a tool that can avert bankruptcy.
Post-divorce financial woes often stem from debts accumulated by a former partner. Debt Free Direct states that in nearly 30% of UK bankruptcies, an ex-partner's excessive debt plays a role.
Couples often take on joint debts, not foreseeing a relationship end. However, divorce can seriously exacerbate debt problems, as spokesman Derek Oakley explained.
Oakley advises couples, whether married or going through a divorce, to safeguard themselves against a partner's financial issues. For instance, even after separation, many couples retain joint credit or store cards. It's crucial to inform credit card companies to terminate these joint accounts post-divorce. Failing to do so could result in being held liable for debts incurred by an ex-partner.
This report challenges prior assumptions that rising debt levels are mainly due to a consumerist culture and a relaxed attitude towards credit, presenting a new perspective on the financial consequences of divorce.
Adfero Ltd
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