How the Ex-Factor can ruin your finances.

Break ups can be a particularly messy affair. You can waste days, weeks and months afterwards worrying about your ex, what they’re doing, and if they’re dating someone new.

But during an unstable economic climate, there’s a more significant worry following the disintegration of a relationship: what a break up can do to your credit rating.

People all across Lincolnshire are at the risk of their ex-partner’s behaviour affecting their credit rating without them even realising.

A survey of 2,043 Britons commissioned by CreditExpert.co.uk showed that more than half of adults didn’t know that an ex-partner could have a negative effect on their finances.

Furthermore, the findings revealed that 37 per cent of those in the Midlands admitted that they were less confident about being able to get credit compared to this time two years ago.

Just making one joint application for credit means that you become financially linked with your partner, even if the account is closed down or never actually opens in the first place.

If not properly removed, you could suffer long term damaging effects on your credit rating thanks to your ex racking up debt or paying bills late.

This financial threat has been named “the Ex-Factor” by the finance website. But what affect is the Ex-Factor having on blossoming relationships?

Richard Bell, 24, and Amy Gregg, 22, from Lincoln have recently celebrated the six month anniversary of their relationship, and are about to open a joint bank account.

Richard explained the motivation behind the move to share their finances.

“Amy and I set up the account with the idea of saving money in Amy’s name,” he said.

“She’s a lot more sensible with money than I am, so it means I can’t get a hold of the cash without her consent, which stops me from wasting it on shiny objects.

“When you’re in a relationship, you can’t really worry about what might happen if things go wrong. You can’t go through life without committing to someone or something.”

Amy echoed Richard’s sentiments, explaining that there were pros and cons of sharing finances in a relationship.

“As with everything, there are both positive and negative elements in opening a joint account,” she said.

“If you spend your life worrying about what might happen if something goes wrong, you’re never going to get anywhere. In relationships there are risks. What’s important is you take them with someone you care about.

“Having a joint bank account shows how trusting and respectful we are of one another, and how seriously we value our relationship and the future we might have together.”