Whether you’re newly dating or married for years, the reality is most couples have to deal with more debt than ever. Financial discussions with your partner still get a bad rap, but it doesn’t have to be scary to be financially transparent and truthful. When you’re in a couple, it’s important to be up front about the uglier parts of your finances—for example, how much are you putting toward student loans? How much are you contributing toward retirement? If you’re not on the same page about how to aggressively attack your debts, you’re bound to run into complications and fights about finances. Here are five ways to escape debt as a couple:
Automate your payments.
If you’re part of the same checking account and have your finances linked together, there’s nothing more important than automating your payments. That way, you’ll never miss a loan payment or a time-sensitive bill, and you’ll never have to ask your SO, “Did you remember to pay that bill?”
Table big purchases (for now).
One of the great aspects of having a partner is having someone to keep you accountable. When you’re working to escape debt, it’s important to cut back your spending and find areas where you can slash costs. That means cutting out cable, subscriptions, or that expensive gym membership. That means saying “no” to vacations that must be charged to a credit card, and limiting how often you eat out.
Know about the big debts.
Communicate clearly with one another about your student loans, your existing financial struggles, and how you plan to pay them off. If you’re not transparent as a couple about your finances, then making big or small purchases can cause resentment because it takes away from your strategy to pay off debts.
Limit credit card use.
If you’re heavily relying on credit cards and making sneaky purchases or shameful purchases behind your partner’s back, it’s time to evaluate your credit card usage. Remember that a credit card can be an incredible asset to building your credit, but when used incorrectly, you can easily tank your credit score.
Ask for help.
If you need help managing payments or you’re struggling with paying off your debts, we can help. Contact Cain and Daniels today for more information on how you and your partner can escape de