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

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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.