{"id":103190,"date":"2024-07-24T10:19:51","date_gmt":"2024-07-24T10:19:51","guid":{"rendered":"https:\/\/www.marriage.com\/advice\/?p=103190"},"modified":"2024-07-25T04:43:53","modified_gmt":"2024-07-25T04:43:53","slug":"managing-debt-as-newlyweds","status":"publish","type":"post","link":"https:\/\/www.marriage.com\/advice\/finance\/managing-debt-as-newlyweds\/","title":{"rendered":"How to Handle Debt in Marriage as Newlyweds: 4 Tips"},"content":{"rendered":"\n

\"Couple<\/p>\n

In 2024, an estimated <\/span>80% of Americans<\/span><\/a> reported being in some amount of debt. Also, in 2024, roughly 22% of divorced couples cited money issues as being a key reason behind the end of their marriage. <\/span><\/p>\n

Needless to say, discussing finances early and often in your marriage is an essential part of keeping it happy and healthy for both you and your partner, and being upfront about debt in marriage is an important part of that conversation.<\/span><\/p>\n

It’s understandable that you would not want to have these difficult conversations about money and debt and real-life things while you are still in your blissful newlywed bubble, but the best thing you can do for your marriage is to create space for these tough chats early on.<\/span><\/p>\n

While these discussions can feel a bit awkward at first, creating an open dialogue around debt and finances will help to save you and your partner from turmoil later down the line.<\/span><\/p>\n

Understanding how debt in marriage will impact you and your spouse, and creating a plan to manage it empowers you to take control of your debt before it takes control of you.<\/span><\/p>\n

<\/span>The impact of debt on marriage<\/b><\/span><\/h2>\n

One of the best things about marriage is how it represents the total acceptance of another person. <\/span><\/p>\n

By agreeing to marry your partner, both of you committed to take on the entirety of the other—good, bad, and ugly. Roped into this acceptance is the acceptance of each other’s financial situations and debt in marriage.<\/span><\/p>\n

High levels of debt in marriage can put significant strain on a new marriage for several reasons. If you are someone living with any amount of debt, you know the kind of financial stress it brings with it.<\/span><\/p>\n

Regardless of where this debt comes from or how much of it you have, this stress can negatively impact your marriage, leading to arguments and – if you let it – causing resentment.<\/span><\/p>\n

RELATED READING : <\/span>10 Tips on How to Avoid Going Into Debt for Your Wedding<\/a><\/span><\/div><\/div>\n

<\/span>4 tips to handle debt as newlyweds<\/b><\/span><\/h2>\n

\"Young<\/p>\n

You have the power to prevent these arguments by addressing financial issues and debt early on in your marriage. <\/span><\/p>\n

By sitting down with your partner and opening up the floor to discuss the debt you both brought into the marriage, the two of you can come at it as a team and create an actionable plan to pull yourselves out of debt. <\/span><\/p>\n

But how do you have these discussions? What is the best way to talk about debt as newlyweds?<\/span><\/p>\n

1. Transparency and communication<\/b><\/h3>\n

It might sound cliché, but the first ingredient to these types of conversations really is honesty. Both you and your partner need to commit to full disclosure so that there will be no surprises down the road. <\/span><\/p>\n

Remember, the two of you are a team now, in every sense of the word. The debt you both brought into your marriage no longer belongs to just the individual, it is shared between the two of you.<\/span><\/p>\n

By prioritizing transparency and open communication that works to center the two of you as a couple, you are ensuring that the conversation remains ‘you two against the debt’ rather than allowing financial issues to pit you against each other.  <\/span><\/p>\n

Setting joint financial goals is really the key here. Decide on a debt repayment plan that works for both of you and fits into your lifestyle without causing financial strain in other areas. To do this, try creating a timeline for your repayments. <\/span><\/p>\n

Do you want to be out of this debt in 6 months? A year? These are questions you and your partner need to get clear on and tackle together so that you can take the small steps to make it happen.<\/span><\/p>\n

Other aspects of this plan could include areas where you will cut back on spending, how much you’re able to put towards debt repayments per paycheck, and how much interest will impact the overall amount you owe.<\/span><\/p>\n

Furthermore, you should keep up with this commitment to transparency by scheduling regular finance chats with your partner. The conversation around money is a continuous one, and as a married couple there really should never be an end. <\/span><\/p>\n

Even after you pull yourselves out of debt, the importance of maintaining this financial planning for newly married couples through transparency cannot be overstated.<\/span><\/p>\n

RELATED READING : <\/span>10 Ways to Speak Your Truth in the Relationship<\/a><\/span><\/div><\/div>\n

2. Budgeting to manage debt<\/b><\/h3>\n

\"Couple<\/p>\n

Another big part of your debt management plan should be working together to create a budget that leaves room for debt repayments. This budget should include things like weekly grocery expenses, gas, insurance<\/a>, and more.<\/span><\/p>\n

As newlyweds, you may have some lofty long term financial goals like buying a house and putting down roots, establishing a travel fund, investing in career development, starting a family, and starting to save for your kids’ college expenses.<\/span><\/p>\n

Research<\/span><\/a> shows that couples that share their finances have happier marriages, and financial planning for married couples is beneficial for this.<\/p><\/div><\/span><\/p>\n

Budgeting is the first step to achieve all of this, however, getting out of debt in marriage first may actually be the best way to tackle these goals in the long-term.<\/span><\/p>\n

Of course, the financial aspirations that you have as a married couple are important, and your budget should include room to save for them, but if you hold off until after you’re out of debt, you might actually get there faster. <\/span><\/p>\n

Unless you can easily find the room in your budget for saving while paying off debt, try to prioritize the debt first and savings later.<\/span><\/p>\n

RELATED READING : <\/span>11 Couple Budgeting Secrets Every Duo Should Know<\/a><\/span><\/div><\/div>\n

3. Consider consolidating debt<\/b><\/h3>\n

There are also avenues available to help married couples tackle their debt in marriage together. One of these is to consolidate all your debt into a single account so that you only have one monthly payment to keep track of. <\/span><\/p>\n

You can do this either by transferring all your balances onto one credit card, or by applying for a personal loan, though going the credit card route might be the easier option.<\/span><\/p>\n

If you do end up consolidating debt onto a single credit card, there are a few aspects to keep in mind, including:<\/span><\/p>\n