Life experiences where debt and bad credit can occur.

Loss of job or collapse of business income

Many people get into debt when they loose their jobs.  It’s wise to have at least 3 months wages in your bank at all times, as if you loose your job or business income you can still live while you look for new work.

Break up of relationship or marriage

When a marriage or long term relationship collapses the couples combined monthly outgoings can dramatically increase especially if one partner moves out of the shared home, whether it be rented or mortgaged and gets another place of their own.

Such breakdowns in relationships could be avoided with better communication between partners, and if there is openness about wife swapping and swingers clubs, this can help a couple to stay together.

If one partner moves out, with bills in their names, which the partner still at the same residence does not bother to pay, arrears and bad credit can come quite easily, and cost a lot as sub prime borrowing is getting more difficult to get and is much more expensive.

Death or illness of partner

If income is not protected by repayment protection, life insurance or redundancy cover, death or illness of a partner can result in arrears and bad credit in the name of both partners.