7 Ways to Avoid Financial Problems and Debt in Marriage
How to Avoid Financial Problems and Debt in While Married
Financial problems are one of the biggest challenges in marriage and a leading cause of divorce.
Data suggest that around one in five marriages end because of money issues.
Furthermore, even if you don’t get divorced, family finances can drive a lot of arguments.
Leading topics of contention include partner debts, being secretive about money, and excessive spending.
To compound the problem further, many Canadian couples see talking about their finances as taboo.
Often, they don’t want their partners to know about their financial situation because they are ashamed or worried about causing them distress.
This lack of clarity then leads to knock-on arguments that detract from the quality of the relationship.
So what can you do to avoid financial problems in a marriage and secure your relationship?
Do Your Budgeting Together
Being secretive about money creates mistrust.
Therefore, experts recommend that couples use online budgeting apps to track what they’re spending throughout the month.
These apps connect to your bank accounts, so you can see precisely how you’re spending and saving.
Open Up About Debt
Knowing how much the other person owes to creditors is vital for charting a course to financial freedom.
Ask your partner how much they owe in student debt, credit card loans, car loans and lines of credit.
Ideally, have this conversation before you get married.
Find Out How Long It Will Take To Pay Off Debts
Debt calculators are simple online tools that tell you how long it will take you to pay off your debts, assuming a given interest rate.
Create A Joint Account
Married couples should, ideally, choose a joint bank account.
Sharing information is the best way to build trust and hold each other accountable.
Host Regular Financial Date Nights
Financial date night might not sound like a lot of fun, but it is probably more important than actual date night for keeping your relationship healthy.
Go for a walk and talk to each other about big financial questions, such as the size of the other’s debt.
If you’re not married already, you might also want to talk about your financial habits too.
Are you a saver or a spender, for instance?
Getting these conversations out of the way early can help you work out whether you’ve found the right person.
Talk About Your Money Problems Early
According to data collected by TD Bank, 45 percent of couples talk about money in the first three months of a relationship.
However, the majority wait much longer to discuss essential financial matters, with some avoiding the topic entirely.
If you think the relationship is going to go the distance, be sure to bring up financial matters within the first few weeks.
That might sound a little awkward.
But it can save you a tremendous amount of pain down the road.
Talk About Paying Off Student Loans
Student loans are one of the most ubiquitous types of debts in relationships – and the most persistent.
If you haven’t already, be sure to talk about the money you owe from your education.
If you’re having problems, be sure to approach trusted debt counsellors for advice.