Life with a partner is a wonderful thing, but it isn’t always perfect. Lasting relationships are built on trust and tough conversations, and money is often at the heart of many challenges between couples. Being able to talk about money with your partner is crucial, especially if one of you is in debt.
Whether you just need to agree to cut back on dining out or you’re ready to consider a debt consolidation loan, these tips might make the tough conversations with your partner about debt a little easier.
Why you should talk to your partner about debt
You don’t have to have joint bank accounts for your partner’s finances to impact you, and vice versa. If you pay bills together, your partner may have to allocate some of their income to paying debt, making it more difficult to pay rent or utilities, which can affect both of your credit scores.
Even if you don’t, you may go out to eat or out on the town a lot without realizing the financial hole you’re digging for one of you. Should you ever decide to get married, one partner may become responsible for the other’s debt in some cases.
Discussing financial concerns can help you work together to find solutions, strengthen your relationship and avoid uncomfortable situations in which one partner can’t afford to do certain things.
Tips for talking to your partner about money
You may not think there’s much romance in money talk. And, well, you’re probably right, but Romeo and Juliet never shared a credit card account. Adult relationships require adult conversations. Here are some tips to help you get those money conversations started.
Encourage open money talk
Some couples may try to avoid the money conversation entirely. Don’t. The more open you are with one another about how much you make and how much you owe each month, the better you can budget together.
If you’re living together, you can figure out whether one of you can afford to contribute a little more towards the bills or set aside more for date nights, travel and other fun things. Honesty is essential in any relationship, but so is transparency. That applies to financial conversations, too.
Be willing to adapt
If you or your partner are in debt, you’ll likely have to make changes to your lifestyle. Help them create a budget and make sure they understand you’re fine doing more at-home date nights. (Cooking dinner together and playing a game might be a lot more fun than a $150 meal out anyway!)
Paying off debt will likely require changing spending habits, which can impact both of you. Going out to eat less may be an easy sacrifice, but you might not want to skip the trip to your cousin’s wedding in Napa. Again, it’s important to be transparent about what sacrifices you’re willing to make to support a partner’s debt repayment plan, and what you’re not.
Set attainable goals together
Everybody should strive to save money. Regardless of who’s in debt, you can set savings goals together. You might consider turning your saving into a little friendly competition. While one of you may be setting aside money to pay down debt, the other can set a goal to save up for a weekend getaway for the two of you.
It doesn’t have to be a short-term savings goal, either. If one of you is trying to save $200 each month to pay towards debt, the other can try to match that with contributions to a savings or retirement account.
Know when it’s time to get help
When you have multiple debt payments to manage, it can sometimes be hard to see a clear way out of your situation really is. Your partner’s perspective could help you make sense of it all.
If you or your partner are in a cycle of debt, you might be past the point where you can simply budget your way out of it. Instead, it may be time to speak to your creditors or to discuss repayment plans or consider applying for a debt consolidation loan. There are many resources that offer free debt analysis and can help you and your partner come up with a plan to pay off debt to ease the financial burden.
Take the stigma out of money talk
You may have been taught that it’s rude to talk about money, but you can’t afford to avoid those conversations anymore. In today’s world, most people work and contribute together to a household’s finances. Whether you live with your partner or not, the more transparently you can speak to each other about money, the more likely you’ll be able to navigate financial challenges together.
Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of growthscribe.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.
Sources:
https://www.bankrate.com/credit-cards/advice/liable-for-spouses-credit-card-debt/#card
