Blog

How to Become Debt Free Before Getting Married

By Amanda Reaume on March 16, 2018 No Comments
debt free, couple

Are you planning on getting married, but worried about how the credit card debt, auto loans, or student loan debt you or your partner currently carry will affect your relationship? It’s no secret that money is one of the things that couples fight about most. According to a study by Money Magazine, 70% of couples fight about money.

As if that weren’t concerning enough, a study conducted at the University of Utah found that couples who fought about money once a week was 30% more likely to get divorced than couples who fought about money once a month.

It makes sense that you’re worried about how debt will affect your marriage – especially if one person in the relationship has more debt than the other. Scrimping and saving to pay off debt can often be stressful, and that can lead to resentment. If you don’t deal with those feelings carefully by talking about them and coming up with a plan, that can cause problems in your relationship.

Do you really need to repay your debt before walking down the aisle?

Here are four reasons why you might want to repay your debt before getting married and how to do it. 

1. Why you should be debt free

Getting out of debt while planning a wedding may seem like a lot to take on at the same time, but it may be the best thing you ever do. After all, you love your fiancé and would do anything for them, and that includes aggressively paying off your student loans so that they won’t have to worry about them.

Even if you both have debt, reducing your debt before marriage is a chance for you and your partner to have important conversations about money and your priorities as a couple and start working together towards common financial goals. Having a talk now about financial goals and how you feel about money will put you on the right track to making better decisions. Paying off debt together will also help you learn how to be frugal – which could come in handy if you’re hoping to save up for a down payment on your first home.

2. Get a grip on your debt

First, add up all your debt so that you know how much you owe. Next, take a close look at your budget to see where all your money is going and where you might be able to scrimp. Redirect these savings towards your debt. There are lots of ways to do this. You can decide to stop buying lunch at work and pack it from home. Or, you may want to consider cancelling your cable and stream TV and movies instead. You can also negotiate with your phone or internet company to try to get a better deal. Look at every dollar you spend and find ways to save money.

Perhaps you’ll focus on putting the same amount of money towards both your debts or maybe you will want to pay off the debt with the highest interest rate first. Every couples’ situation is different, but it is best to approach debt aggressively, so it does not carry into the marriage.

3. Get creative at ditching your debt

One way to expedite your debt repayment is to or start a side hustle. You could start a small business, become an Uber driver, become a dog walker. You could even come up with a side hustle that you and your fiancé can do together.

Another creative way to ditch your debt is to refinance your debt. You can get a personal loan or home equity line of credit to refinance credit card debt at a much lower interest rate or you can get a credit card with a 0% introductory interest rate and do a balance transfer. The goal is to reduce the amount of interest you’re paying so that you can repay your debt more quickly.

4. Talk about your debt philosophy

Once you’ve waved goodbye to your last student loan or credit card balance, it’s critical that you talk to your partner about how you both want to handle debt and credit in the future. This will ensure that you’re on the same page before you walk down the aisle.

You might not always agree about debt in your marriage, but you should work towards a compromise that you’re both happy with.

 

Amanda Reaume


Amanda is a freelance writer and the creator of the blog Millennial Personal Finance. After graduating from university with no debt, and $40,000 in savings, Amanda wrote the book The Complete Guide to a Debt-Free Education. She is also the author of a personal finance book aimed at Millennials called Money Is Everything.

When buying a car, does leasing or financing make the most sense?

By Rubina Ahmed-Haq on April 25, 2019

Buying a car is an expensive proposition. You want to do your research and make sure the vehicle you’re purchasing is best for your needs.  The decisions don’t stop there, though. Once you’ve chosen the car that best suits your lifestyle and budget, you must decide how you’re going to pay for it.  There are…

Start Your Retirement Savings Plan Today

By Rubina Ahmed-Haq on April 23, 2019

The younger you are, the harder it can be to imagine what retirement is going to look like. For some, that major life event is 40 or more years away. The reality is this: the earlier you start retirement savings, the more likely you are to have a successful retirement, one that’s filled with all…

Discover the best budgeting apps for Canadians

By Rubina Ahmed-Haq on April 18, 2019

Technology can be a force for good when it comes to budgeting and saving. Canadians like you who want to spend money wisely can use apps to keep you on track. With the power of budgeting in the palm of your hand, there’s no excuse for being unable to keep your finances in line. Here…

Incremental Budgeting: Gaining Capital Over Time

By Sean on April 16, 2019

Incremental budgeting is a budget type where you add a specific amount of capital to a previous quarter’s or period’s budget to permit slight increases. This method is mostly used as budgeting for businesses. Although this budget method is simple (much simpler than activity-based budgeting), most financial professionals won’t recommend it. The main reason is…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered