Debt threatens the stability of your marriage. This is worse if you got into the debt without your spouse knowing it. It breaks your level of trust and creates uncertainty about your family financial stability.
Even shared debt can cause tension in your relationship as a couple. When you are in debt, the money at your disposal reduces and you are most of the time forced to change your spending habits. It may make you argue more about money issues, which is made worse if one partner feels that the money was not put into good use. This can threaten your relationship and lead to a divorce.
But you can prevent this if you understand some facts about debt and money management for couples. Here are some debt management tips for couples that will help you to keep together even if you are in deep debt.
- Avoid unnecessary borrowing
If you are a young couple, you may get into financial trouble if you decide to borrow to finance your wedding. This adds to your financial obligations, especially if you are still financing your student loan. You start your marriage straining financially.
Credit card debts put a lot of strain on marriages. The interest charged on these debts is high, and it becomes difficult to get out of the debt, especially if your card allows you to top up your credit. One spouse may also take a huge debt on the card before the two of you agree on it, putting you into a deeper financial crisis.
As a result, you may pay more attention to your money troubles and fail to build a solid foundation for your marriage. This may be worse if you begin blaming one another. Resentment can set in, and you may end up divorcing.
To prevent this kind of debt from ruining your marriage, discuss it candidly and be realistic about your financial situation. The two of you should agree on what you need to do to get out of the debt. You could begin by drawing a reasonable budget and sticking to it.
- Pay the debts with the highest interest first
When you do this, you reduce the interest that you will pay on such a loan. If you ignore the debt with a high-interest rate, the interest accumulates, and the amount you owe keeps going higher. It may take you longer to pay that debt in full, keeping you in your financial crisis for longer.
- Do not fall for the trap just because you can easily access a loan facility
Loans have become easy to access. You can get a loan against your car in a matter of hours. There are many lenders advertising logbook loans and vehicle equity release. Some of the lenders do not need to check your credit history to extend such a loan to you, which can easily allure you to easily get into debt.
You can overcome the temptation of easily taking a loan if you have a serious family financial policy. The surest way to keep away from such debts is to be open about your finances.
Discussing your finances allows your spouse to be your accountability partner. You avoid making major financial decisions without consulting your spouse. Also, when you discuss your finances, you can filter unnecessary expenses.
To prevent debt from putting a strain on your marriage, accept where you are financially and live within your means. Do not borrow to buy stuff to impress other people. And if your friends and neighbours are borrowing to buy stuff and finance holidays, do better than them by waiting until when you have saved for the items or the holiday.