How to Talk About Debt Before MarriageApr 19, 2017
If you are currently in the process of planning a wedding, you are well aware that there is a lot to discuss with your future spouse. In addition to choosing a wedding venue and a song for your first dance, it’s also important to fit in a discussion about your finances and your debt. While it may not be the most romantic topic, discussing money and debt before you tie the knot will help mitigate any potential financial problems down the road and will also help you and your partner work together toward being debt free. Here are some tips for discussing financial matters with your future husband or wife.
Know how much you owe
According to recent statistics, approximately two-thirds of Canadians enter marriage in debt. From student loans to car loans to mortgages, it’s likely that you and your partner will be bringing some form of debt into your relationship. If this is the case, it’s important that you and your partner have a solid understanding of the debts each partner carries, including the amounts and the types of debts that are owed.
To gain a clear picture of your mutual debt, it’s a good idea for both partners to create a list of the debts that they owe, the amount that is owed and the amount of money it will take to repay. An online debt calculator can make this a simple and easy task. Once this list has been created, you can combine the two lists in order to understand your mutual debt.
Create mutual financial goals
In addition to talking about how much you owe, it’s also essential to discuss and create mutual financial goals that you can work together in order to achieve. This could be anything from purchasing a house together to being debt free in five years.
When crafting your mutual financial goals, it’s important to keep them realistic. Make sure that your financial goals are aligned with your financial priorities and your financial situation. Although a trip may seem like a fun idea, if you are both feeling stressed out by the amount of debt you owe, it may be a better idea to put the vacation on hold. You can then focus on reducing debt and working toward becoming debt free.
Seek help if necessary
Dealing with debt problems before your wedding can help you start married life off on the right foot. If, after discussing your debts, you and your fiancée are troubled by the amount you owe, it may be a good time to seek debt help. Keep in mind, you are not alone when it comes to dealing with debt. There are many debt relief solutions that can help you effectively reduce your debt and regain control. There are also debt relief professionals, such as a credit counsellor or Licensed Insolvency Trustee, who can provide the debt help you need so you’re not worrying about money on your big day.
Are you planning on talking about finances and debt before your big day? What concerns do you have? Join the conversation and share your thoughts with BDO Barrie using the hashtags #BDOdebtrelief #LetsTalkDebt.