Planning to Reduce Debt in Marriage

In her book, The Couples' Guide to Money (McPherson's Printing Group, 2004), Linda Gough explains why couples end up in debt and offers advice of how to reduce it. To maintain a debt-free lifestyle, it is essential to change spending and saving habits. This is often a multi-faceted process that takes time and effort.

The Causes of Debt in Marriage

Some couples start their married lives with debt and others incur it after the wedding. Gough suggests there are many reasons:

Debt through having a lavish wedding

Expensive overseas trips or honeymoon.

Wanting the latest furnishings and technology in their home.

Buying a house in an expensive area.

Buying goods on credit.

Impulse buying.

Access to multiple credit cards.

Redundancy.

Interest rate increases.

Inherited debt that one partner brings into marriage.

Whatever the cause, it is never too late to stop, reconsider and start working towards clearing debt.

Ways of Reducing Debt in Marriage

Debt reduction may take months or even years and requires partners to work together. With a specific plan laid out, the process will be easier to manage and progress will be measurable. Here are some suggestions of how to tackle debt:

Make a list of all debts and how much repayments are costing per month.

Consolidate debts by taking a personal loan at a lower interest rate which will pay off all the smaller debts.

Cut up credit cards and keep only one for emergencies. It may be a good idea to freeze this in a block of ice to prevent impulse spending.

Negotiate with creditors and come up with a plan to pay off the debt as quickly as possible.

Adjust lifestyles by selling a second vehicle, downsizing to a smaller home and cutting back on takeout food and luxury purchases.

There are agencies and banks that offer free assistance and guidance to organizing debt. It may be a good idea to have someone overseeing the process, especially if one partner is a greater spender than the other.

Maintaining a Debt-Free Lifestyle in Marriage

Most couples have to sacrifice certain pleasures in order to pay off their debt. It is hopeful that when their finances are back in shape, they will continue to live carefully and resist the temptation to buy on credit. Finances can be a sensitive area and it is important that married couples discuss their views openly.

It may be a good idea to require two signatures on a check account and allowing a sum of personal spending money can offer the measure of freedom that some partners crave. Working to a budget is essential and savings should be a must once the debt is paid off.

Marriage partners sink into debt for one reason or another but if the situation is handled correctly, the money can be repaid over time. It is important for couples to learn from their mistakes and change lifestyles and spending habits so that they can save money while still enjoying life. A debt-free lifestyle is a lot less stressful than one where hours are spent juggling payments and accounts.