Until the debt separates us: talk about debts with your spouse

Image result for happy couple

Ah, the first weeks of a new relationship. The ideal time between the first stressful outing and when you should have your first discussion about credit. When you and your partner are more comfortable with each other, and the prospect of living and starting a life together, it’s time to start planning your financial future. This includes a discussion on each of your respective credit situations. Most people do not want to be the person who establishes or breaks a relationship depending on the financial situation of the other. However, when it comes to personal finance, bad credit can really get in the way.

Does your sweet half have bad credit?

Image result for credit checkLet’s put the points on the i. Let’s say that you have passed the phase of asking yourself where you are in the relationship. Your partner and you want to become serious. Usually, the first step is to move together. Your first apartment is just around the corner. Then there are people who want to skip this step and move directly to their first home together. But, what if your partner is not financially stable? It could spell disaster for your relationship and finances. There is no better time to seriously discuss your credit situation. Although it is almost always unpleasant, the discussion about credit is important, even if one of you is reluctant to have it. You certainly do not want to look selfish, or find yourself in the judge’s shoes, and end a good relationship because of something that seems trivial. However, the monetary situation of your partner is a valid concern to take into account. You do not want to move into apartment or house, and be engulfed under debts. How can your partner’s bad credit affect your financial future?

Attending to someone is a different story. When you are not fully engaged with another person, with no marriage in sight, it is always possible to develop your own financial situation, then help your partner with his own. If you have moved together, and can not afford to pay the rent, in the worst case, you find a way to pay back the money you owe and go back to live at home until your situation stabilizes. . Before moving out together, it would be a good idea to know your partner’s yearly income, his credit record and any debts he or she might have on the back. This is especially important if you plan to split the rent as well. Considering all the other expenses associated with renting an apartment, if your partner can not afford to pay their share, you will see your savings fall quickly. Once these concerns are on the table, you can begin to solve the problems.

When comes the weddingImage result for wedding

If you plan on marrying in marriage, you should have already discussed credit. With marriage, there are a lot of things to consider, such as buying a house or property, having children, and possibly retiring. Since you and your spouse will probably combine your income, and therefore your finances, it is very important to know where you are both financially. The acquisition of a mortgage, is, of course, a huge commitment that you could repay for years to come. An unstable credit situation could not only have an impact on your lives but also the lives of your children, if you plan to have one. If you want to be able to put money aside for them, making smart investments is the key. Opening a savings account and setting aside both is a good start. Make an effort not to get caught under a ton of credit card debt. This will have a huge impact on your future.

Discuss your situation and what you can do

Without a doubt, it is extremely important to know where you and your partner are financially. If your partner has bad credit, do not jump the trigger and do not take out the points immediately. If you have trouble understanding things, talk to a professional counselor. It will examine your partner’s annual income, financial stability, and give advice on how to start getting out of debt. Depending on how much your partner owes, this is a good idea, considering the repercussions of being stuck under a ton of debt.Related image

Consider the adoption of a legal agreement

If your partner’s credit situation is still worrying, you can still look into a cohabitation agreement, or, in the case of marriage, a prenuptial agreement. Contracts such as these are made to ensure that both parties are treated properly in case of breakup or divorce. This will divide your property in the way that you deem appropriate and will help you resolve any conflict that may arise during the separation or divorce process. Although this is another difficult subject to address, it must also be taken into account. Discussing your finances is an important part of any relationship. It may be just like a first outing, a stressful subject. However, ending up in an unstable credit situation would be even worse. Your partner could be stuck with debts. Talking about it first might help to take the necessary steps so that you can build a healthy financial future together.

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Bank Alternatives

The traditional approach when it comes to getting a loan, a mortgage or a refinance for your home would be to go to the bank. However, what are the other options that are available to you? Could you really save money not going to the bank? The answer is yes.

Save with a Mortgage Broker

 Save with a Mortgage Broker

There are several alternatives to banks, including private lenders, credit unions and other lending institutions.

The easiest way to find a less expensive financial source than a bank would be to visit a mortgage broker. Brokers know the market and know everything about the different financial products available to you. Mortgage brokers work for you, the borrower, and it is precisely for this reason that they seek to find you the best possible rate for your loan. They also take care of your shopping, so it’s a good way to save money and time.

Solutions for individuals who have a bad credit score

 Solutions for individuals who have a bad credit score

If you have bad credit, do not worry. It is still easy for you to get a loan, even without the banks.

Rental with option to purchase

If you have a bad credit rating and do not qualify for traditional loans, lease with option to buy is a wonderful way to start working in the same direction as the property of the house of your dreams. With the rental option, you basically have the choice to buy the house you want in a specific period of time.

Some of the benefits of renting with a purchase option include: paying a lower amount for the first payment, developing home equity, avoiding closing costs, and repairing your credit rating.

Private Loans

Another excellent source of financing for individuals who have misery with their credit rating is private lenders. These lenders are not interested in your income or your credit rating as banks are, and their lack of compliance with the standards and regulations means that they can close a file in just a few days, usually in less than 48 hours .

Seller Financing

 Seller Financing

Another option aside from the mortgage is financing by the seller. In this situation, the property belongs to the buyer, and the seller takes the role of the lender. The buyer pays the mortgage payments to the seller (this is not a lease but real mortgage payments). The buyer benefits first and foremost by buying a house, but also by building his credit. In case of default of payment, the seller is protected by the keeping of the note on the property. The seller can lend to anyone: those with bad credit, self-employed, bankrupt – name them!

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