Even though debt may become a reality, it can “bite back” and harm the general health of your marriage. This is because debt creates an increasingly heavy burden on many relationships. The findings of many consumer debt research studies have shown that debts adversely affect marriages. This is especially true, in cases where you go into debt without the knowledge of your partner. It not only creates financial instability in the family but also breaks the level of trust between you and your partner. While shared debt may seem like a lighter burden, it is not always the case. This type of debt also creates tension in a relationship and leads to insufficiency. A marriage that is struggling with debt is likely to have monetary arguments that threaten the relationship and even lead to divorce. In this article, we will focus on debt and money management for relationship partners that will help you stick together, even when caught up in debts. Take a look!
Four Debt and Money Management Practices for Couples
1. Avoid Unnecessary Borrowing
If you are a young couple, the onset of financial instability in your marriage may be the act of borrowing money to finance your wedding. Often, this debt is usually added to the student loans that both of you are yet to pay. Rather than having a glamorous wedding that is financed by debt, you’d rather have a simple wedding with all the essentials financed by your pocket. If this is your case, there are plenty of ways you can pay off student loans fast so you can move on to a bigger financial goal, like your wedding expenses. Another form of unnecessary borrowing may come as a result of credit card debts that come with high-interest rates. These debts strain your marriage since they are hard to eliminate. Worst-case scenarios occur when one partner takes a massive debt on the credit card without consulting the other. To avoid this financial crisis, be sure to discuss the matter with your spouse, see if it is necessary, come up with a reasonable budget on how you will spend the money and plan on how to pay it back before the interest rate increases the debt.
2. Begin by Paying Off the Debts that Have A High-Interest Rate
Paying off the debts that bear a high rate of interest first is beneficial as it reduces the total interest of the debt. Additionally, this will help to avoid the accumulation of interest. Ignoring the high-interest debts will make you pay your debt for a longer time, and this, in turn, strains your financial status the more.
3. Do not be Tempted to Borrow Because of your Ease in Accessing a Loan Facility
Nowadays, loan facilities have easy access, and this means that you may not need a lot of paperwork to get a loan. With the countless lenders advertising vehicle equity release and logbooks, all you need to do is to approach them, and you will get your loan organized. To ice it, most of these lenders will not look at your credit history to give you the loan. These circumstances may lure you or your partner to obtaining a loan. While this may seem like an easy way to get some cash to facilitate the needs of your marriage, it comes with a heavy cost. You can overcome this by drafting a family financial policy, be accountable to your partner, and filtering unnecessary spending with your partner.
4. Learn to Live Within Your Means
The best way of avoiding unnecessary borrowing and debts is living within your means. Accept your financial status and live by it. Do not borrow to purchase luxurious staff to be in the competition list or please people. If you realize that your neighbours and friends are borrowing to have gained a status, do not let this mislead you or your partner. Buy your staff after saving and not after borrowing.
Do not allow money and debt fights to eat away your marriage. Always keep in mind that no one is perfect, and your view of money and spending may not always be similar to your partner. The two of you can successfully balance how you spend money in your marriage without any struggles. The good news is that you are in partnership with your spouse, and with this backup, you will be victorious in fighting the debt in your marriage. Following the aforementioned steps will save you money.