It is not uncommon for the partner or a dear friend or family member to get into a financial bottleneck through no fault of their own, which can only be eliminated if a loan is taken out. But this is not always easy. Especially when the financial bottleneck has already progressed so far that it shows the creditworthiness of the person concerned in a negative light. Then good advice is often expensive and a solution has to be found that deviates from conventional approaches.
One of these solutions can be partner borrowing. This means that the partner, spouse or joy of the person concerned takes out a loan in order to make the money from the loan available to the person concerned. This uses the money to get back on its feet financially and pays it back to the borrower so that he can pay the installments with it. What sounds very simple and feasible in theory must be planned very carefully in practice so that the well-meaning supposed help does not turn into a debt trap for everyone involved.
Trust is the basis when taking out a loan for the partner
If you want to take out a loan for your partner, you must be aware that you are taking on a great deal of borrowing that will not become too heavy and overwhelming only if the borrower can rely on the person in debt. So when that person not only says that he takes care of the loan settlement, but does so. Otherwise, the borrower remains on the debt and has to raise it himself, even though he has not used the money from the loan himself.
In order to be able to build up the borrowing not only on warm words, but also on sufficient deeds, we recommend that you always conclude a contract with the debtor before the borrowing, in which the repayment of the money from the loan is precisely regulated. The contract is then regarded as a promissory note, which – if filled out correctly and provided with all important data and signatures – is enforceable. Even if the debtor is the spouse or the best friend or another family member, this protection should never be forgotten and should be seen as the basis for the loan for the partner.
When is it worth taking out the loan for the partner?
Sometimes it is small and completely banal things that prevent the partner from borrowing independently. Perhaps the employment contract is still temporary instead of unlimited or private credit bureau has saved a negative entry that has actually been paid for some time. Then, as long as the loan amount complies with the partner’s income, a good job can definitely be done with borrowing.
Support in the form of a loan that the partner takes out can always make sense if the partner can take an important step into the future. If he is able to expand his company and thus his income, a study can be financed or if the loan helps to buy a vehicle that enables him to take up a job. So all those things that play a major role in terms of further development.
When is the loan for the partner no longer worth taking?
On the other hand, distance should always be taken if the partner has no income, if his financial situation has gotten out of hand and is therefore no longer manageable, or if the debt sump is already so deep that it is no longer possible to escape. Then you shouldn’t accumulate any more debt unnecessarily.
Rather, it would then be important that the current financial situation be deciphered and taken into hand. Because debts are not a trivial offense and lead to major problems if they are not eliminated. Therefore, it may be better to go into bankruptcy than build up more debt in the hope that it will be able to pay off the existing debt.