Getting married can be a very exciting time in your life. But, if you’re anything like the average couple, the excitement of getting married will soon be replaced with feelings of stress. And, that’s because there are so many things to think about and organize – not to mention payments to make on day-to-day living expenses, without making any headway with your long-term financial stability. Find out how you can get your marriage debt-free in just 10 steps!
Consider how to split your debts
You and your spouse may not agree on how to split your debts. This is one of the most stressful parts of a divorce and it can be difficult to make a decision. Some people will say that everything should be split 50/50, but this isn’t always the best plan.
Make a budget
The best way to get out of debt is to start with a budget. Setting clear goals and then tracking your spending will help you find where you are wasting money. You can then focus on cutting expenses or increasing income until you are debt-free.
Pay off unsecured debts first
If you have any unsecured debts, it’s important to pay those off first before tackling your mortgage. Paying off these debts will help you get back on track with your finances and show your spouse that you are committed to making their marriage work.
Keep any personal possessions you want to keep
If you decide to keep some of the debt as your own, rank what you want to keep and what you don’t. Put the items you want to keep on one side and the items you don’t want to keep on the other side. Look at how much it will cost for each side and then make a decision.
Consider whether to rent or buy
One of the main factors in deciding to rent or buy is your age. If you have a steady income, it is usually better to buy a house. If you rent, your monthly payments could be higher than if you bought a home because you won’t have any equity in your home. Homeowners also typically spend less money on repairs and maintenance.
Get support from friends and family
When we’re in the middle of a tough situation, it can be hard to admit how bad things are. If you need help to write off debts, don’t be embarrassed to ask for it! It’s OK to lean on friends and family for support. They will appreciate that you’re trying to take care of yourself and your marriage.
Ask for help from the bank see if they will cut the interest rates on your loan, or consolidate debts into one loan
If you have a variable-rate loan, call your bank and see whether they will reduce the interest rates on your loan. If not, try to consolidate debts into one loan so you only have one repayment to make each month.
Focus on clearing
Pay close attention to those two little words: “focus on clearing.” This translates to prioritizing the things that will clear your debt and ignoring everything else. If you’re not sure what other debts to take care of, look at your interest rates. The higher the interest rate, the more it costs you in the long run.