Ways To Become Debt Free Before Marriage
Planning to get married, yet anxious regarding existing loans and other forms of debt which can potentially affect relationship isn’t a new proposition. In fact, the study shows that 70% of couples fight about money. in the study conducted by Money Magazine. Besides, in the study initiated at the University of Utah imply that couples who argue with money in a week have a 30% chance of getting into divorced than those who argue over money in a month.
Therefore, it is logical that you’re anxious about how debt can possibly ruin your marriage. This is true, especially if the other half carries a massive debt than the other. Besides, penny-pinching to save money for debt payments can cause frustration and stress, which can lead to depression and resentment. Moreover, if you fail to manage your emotions when facing debt problems, it can end up your relationship.
The big question that you may need to consider before saying your vows is: Do I need to repay debt before tying the knot?
Reasons and Ways to Repay Your Debt Before Marriage
The following are four of the reasons and ways to help you repay debt before marriage. Knowing these tips might help you overcome your struggle and save your relationship.
Why Repay Debt Before Getting Married
Trying to pay off your debt to become debt-free while putting your plan in place for marriage may seem too much to carry at the same time. However, your desire to fulfill your relationship goals, after all, is as important as your goal to be debt-free; hence, you will do all means to achieve both. Besides, it is desirable to have money talk with your partner to build a stronger bond.
Regardless of you and your partner carrying debt, reducing its amount before marriage is feasible when you are both on the same page in terms of your financial goals. You can start implementing your action plan to achieve your common goals in aligning your finances and keeping it on track.
Gain Control on Your Debt
Your initial step is, to sum up, all your debt and determine your debt-to-income ratio. You may need to review your budget and try to determine where to cut back on your expenses. This way you can free up money for your debt payments.
Strategize Earnings to Pay Off Debt
One approach to facilitate your debt repayment is to come up with income-generating sidelines or activities to increase your income. If your debt is something that is deemed for debt consolidation, you might consider one as it allows you to reduce your interest payments.
Talk About Your Views On Debt
You can start a healthy conversation with your partner on how you view debt and how both of you will handle it in the future. Moreover, sharing your financial views and goals can help you sustain the enthusiasm towards gaining control over your finances. It is better to start planning early and discussing your financial goals before you say your wedding vows and journey towards your marriage life.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.