Check If You Qualify

My partner and I are considering a joint loan, is it wise?

Sharon McDougall - Updated - 2nd August 2023 - 2 minutes to read

When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is that you could be left seriously out of pocket if things turn sour.

What do studies show regarding joint loans?

A recent survey from the Debt Advisory Centre Scotland (DACS) revealed that one in six borrowers who applies for and takes out a joint loan with their partner are unaware of the full implications, should they default on payments. One in ten respondents thought that they were only responsible for half of the loan, and 2% of respondents believed the proportion of repayment depended on their annual income.

When taking out any joint credit agreement, it’s important to be aware that if for any reason your partner is unable or unwilling to make repayments, you could be left to repay the loan on your own. A couple will often take out a larger loan that, as an individual, you would not be able to afford to repay.

It’s too easy to believe that these kinds of problems will never occur when taking out a loan and it seems the natural thing to do as a couple. But according to figures from the DACS, one in every ten people who seek help, do so due to the break-up of a relationship which has left them unable to repay their debts.

Although applying for a joint loan can be risky if you’re unprepared, it’s often a necessary and unavoidable part of life. Obtaining a joint mortgage will allow you a higher property budget, and it’s often easier to obtain credit by applying as a couple (provided you both have a reasonable credit rating).

What to do if one person has a poor credit rating?

If one person has a poor credit rating, it’s wise to avoid applying for credit together. Linking yourself to your partner with a joint loan will also link your credit files, and you could be penalised for your partner’s poor credit when applying in the future. If you’re unsure of how your credit rating stands, make sure you both do an online check before applying, as simply being refused credit can reflect badly on your credit score.

If you’re struggling with debt as a result of a relationship breakdown or need advice on other options to keep your debts from spiralling out of control, why not contact our knowledgeable advisers at Scotland Debt Solutions. Our team of experts can provide impartial advice on the most suitable way to manage your finances and, if necessary, point you in the direction of a debt management plan to suit you. So if you’re looking for a joint loan to pay off existing debts, contact Scotland Debt Solutions for expert advice before making any decisions.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...


Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser


We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office


We can help you with...



Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners