How To Get Out Of Debt Together
Most couples fight about money, it’s kind of unavoidable. You both have different spending habits and attitudes toward money. One partner may be frugal while the other could be more of a spender. At times, one or both partners may be reckless when it comes to spending and, before you know it, a sizeable amount of debt has been accumulated. Debt affects your financial well-being and your ability to reach goals in your life together. Unless you can get a handle on it, debt can ruin a marriage. Here are tips on getting out of debt as a couple.
Talk It Out Together
When it comes to talks about your financial situation, you need to be 100 percent upfront and honest. You may even have trouble being honest with yourself. But you can’t start moving toward a better future together until you know exactly where you stand, so tackle it together.
As hard as it may sound, you’ll need to lay everything out on the table. Each person should share information about all their debt—whether it’s from credit cards, student loans, medical expenses, or loans from family. This includes what debt you have, the amounts and interest rates, and the repayment plan. It’s also important to express any concerns you have.
Order your credit reports from each of the three major credit bureaus. You can order one for free at AnnualCreditReport.com. You’ll emerge with a clearer understanding of what the true state of your finances are and can plot a path forward.
Develop A Plan to Pay It Off Together
If you do decide to tackle the debt together, will you be paying it off jointly, or will each partner be responsible for paying half? Develop a course of action, and figure out a timeline as to when you want to achieve this by. Just make sure that your plan is realistic financially and that you are both on the same page with the plan. You don’t want one partner feeling like they’re the one making all the concessions and compromises on behalf of the other. It’s a joint venture with a shared goal and a mutually beneficial outcome.
Your partner’s debt doesn’t mean you have to turn and run in the other direction. Although talking about money can be a tricky thing to navigate, it’s essential to a healthy long-term relationship. Openly communicating and coming up with a plan to tackle the debt can help you and your partner be more confident about tackling the debt and ultimately building a better life together.
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