Romantic partnerships can come in all shapes and sizes, from marriages to de facto relationships to casual relationships and everything in between.

No matter what the relationship, it’s always possible to end up in the shallow end if your significant other (SO) is drowning in debt or has poor spending habits.

Here are some common ways your partner can burden you with their debt and how you might avoid it:

1. You try to take out a joint loan with your partner, but are denied because of your SO’s past debt issues.

The only real way to escape this fate is to avoid it in the first place. That means when sizing up potential long-term partners (you know, the kind you’d trust to open up joint accounts with), you’ll need to take their financial attractiveness into account.

That means being open and transparent up front about your financial goals and how you can reach those goals together.

If you talk about the prospect of owning a home together you may have to share some personal information, like how well you save and how healthy your credit report looks.

If you don’t know what your credit report looks like, Credit Simple lets you check your credit report and score for free, anytime, and without negatively impacting your score.

2. Your partner asks you to take out a loan on their behalf.

This can impact anyone, whether you’re in a long-term commitment, or have only known each other for a few weeks.

If your partner doesn’t have the cash flow and/or the credit score to secure a loan, be wary of taking out a loan for them no matter how much they try to charm you or plead with you.

You’re responsible for any debts in your name, period.

If it’s to purchase a car, property or some other large asset – and you really do want to help – make sure to get a title for the asset and register it in your name.

You’ll still be responsible for the debt, but at least with a title, your SO can’t make off with the asset if the two of you happen to split.

It’s also a good idea to have your own personal savings account where you can stash away your own funds in case of such an emergency.

3. You open up a joint account with your partner, and they go on a spending spree.

There are a number of ways your partner can misuse a joint account and burden you with debt.

It could be a joint credit card where they spend a huge sum on gambling, buying shoes or whatever their fetish.

It could also be a joint savings account they drain in a similar vein, leaving you with nothing left to pay off your debts (personal and/or shared).

Another scenario is where you have a mortgage with someone, and they withdraw funds using the redraw facility (a feature on some accounts that lets you make extra payments in return for the ability to withdraw this extra cash later down the road).

If you’re worried about your partner’s spending habits, the best way to escape this fate is to avoid joint accounts altogether, or go for a joint account that requires each person’s authorisation for any withdrawals or purchases.

The bottom line

Like many aspects of a relationship, there’s a lot of shared responsibility when it comes to finances – especially as the relationship progresses.

The keys to keeping yourself safe from a reckless partner are to vet your potential partners at the outset of the relationship, let your finances intertangle only at a rate that feels appropriate to the relationship’s strength and put safeguards in place if you are happy to take on the lion’s share of financial responsibility.

The information in this blog post is general in nature and does not constitute personal financial or professional advice. It is not intended to address the circumstances of any particular individual. We do not guarantee the accuracy and completeness of the information and you should not rely on it. Before making any decisions, it is important for you to consider your personal situation, make independent enquiries and seek appropriate tax, legal and other professional advice.

How to save money on Valentine’s Day without looking cheap?

Valentine’s Day can be seen as a day that requires big spending.

But it doesn’t have to be.

Your time and attention is one of the best gifts you can give.

Here are five romantic Valentine’s Day ideas that will show love to your partner and your wallet.

 

1. Prepare a special dinner

Instead of spending money on an expensive meal at a restaurant, prepare a meal at home. Many of the dishes available at a restaurant can be made at home for a fraction of the cost. Add to that a few candles and a good movie and you’ll have a great night in.

2. Bubble bath and massage

Kick back and relax with a scented bubble bath and set the tone again with candlelight. Follow up with a pampering massage for the one you love.

3. Go out for dessert and drinks

You can still have a night out without breaking the bank. Enjoy an intimate dinner at home, then go out somewhere nice for dessert and drinks.

4. Have a picnic

Valentine’s Day is the perfect time to go on a picnic. Bring your favourite food and drink, grab a cosy rug and find an idyllic, tranquil spot to enjoy the fresh air and each other’s company. If bad weather strikes, you can have a hip picnic indoors.

5. Bring breakfast in bed

Make Valentine’s Day special by bringing your partner breakfast in bed. Sharing a romantic meal and snuggling up together in the morning is the perfect start to a romantic day.

 

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Do you find yourself running low on money before you get paid?

When you’re in the habit of living pay cycle to pay cycle, saving even a little bit of money can seem impossible. But it doesn’t have to be.

Below are five simple things you can do now that will help you save money.

1. Check your utility, telco and insurance contracts

While this can take a bit of time, it pays to periodically check your utility, telco and insurance contracts to see that you’re getting the best deal. If not, change providers.

2. Save money on food and coffee

Plan what you need before going food shopping and stick to your list. Avoid being lured into buying stuff you don’t need. Also consider substituting branded products with own-brand equivalents.

Pack a lunch for work instead of buying lunch and cut down your coffee shop spend by making your own coffee when you have time.

3. Take advantage of free stuff

When it comes to saving money, the best things in life definitely are free.

Instead of buying a book, check if your local library has it, or can order it in. For a day out, look up free events in your area, or take a trip to a park, beach or museum.

4. Pay off your debts

Pay off as much debt as you can and then start saving. Each debt freed up will be a huge leap towards your saving goals.

5. Monitor your spending with a Spending Tracker

Keep track of your finances with a Spending Tracker. They enable you to:

– Monitor all your bank and credit accounts in one place.
– Customise your spending breakdown with handy filters.

 

Check out our blog for more information on Credit Simple.

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Comprehensive Credit Reporting is a regime that helps lenders judge how well you can manage your borrowing commitments and make repayments. Let’s take a closer look at what the system is, how it works and the potential impact on credit scores.

1. Changes happened in 2014

Comprehensive Credit Reporting was introduced in 2014. It allowed banks and lenders the opportunity to provide more information to credit bureaus about the accounts you hold with them.

2. Your score may change

The availability of more data on your credit file means that your credit score may change. However, that’s not certain. Credit Simple’s analysis of Australians who had data from a Big Four Bank on their files showed that 52 per cent of those people saw their credit score increase after the bank started contributing information. Meanwhile, 45 per cent of credit scores fell and 3 per cent remained unchanged.

3. There may be more credit information on your file

Thanks to CCR, you may start to see more credit information within your Credit Simple dashboard. This information may include the dates you opened and closed an account, the type of credit account you hold, your credit limit, and your monthly repayment history. Log in and see what’s changed.

4. CCR is a good thing for Aussies who pay their credit repayments on time

CCR is good for consumers, as it builds a more robust and detailed picture of your credit habits – basically, whether or not you’re a good customer when you’re using credit. Information being added may help to build a more thorough picture of how you handle credit and make payments, which may give credit providers a better idea of how much they should lend to you, and on what terms.

CCR also helps to build a more thorough picture of your credit information, which may make it easier for you to quickly build a credit file showing consistent repayment history, as well as possibly showing if you’ve recovered quickly after a negative event such as a default. CCR may help increase competition among credit providers so consumers can win through better deals.

5. Our mates across the Tasman are already all over CCR

In New Zealand, CCR was officially introduced in April 2012. Kiwis with positive reporting data included in their file have credit scores that are an average of 100 points higher than before. While CCR may not result in easier access to credit for everyone, the changes should bring greater transparency to lending decisions and may help people recover more quickly from adverse credit situations.

More on Comprehensive Credit Reporting and how you can get a better deal:

Five years of Credit Simple

To celebrate our 5th birthday, we’re giving away 5 x $200 gift cards.

To be in the competition to win, all you need to do is submit your top tip on improving Credit Simple*. The top 5 entries win a $200 gift card each. You will have to login to your Credit Simple account to enter into the competition.

*Terms and conditions apply.