Debt is an unfortunate reality in many marriages. It can derail your goals as a couple and bring about friction and disagreements, causing a strain on the relationship. With 54% of Americans believing their partner being in debt is reason enough to consider a divorce, according to National Debt Relief, this is a wake-up call for couples to look closely at their finances. It can be challenging to recognize the signs of debt early on and even harder to rid yourself of it. Fortunately, there are steps to identify and recognize the warning signs of debt in marriage and how to steer clear of them.
1. Track Your Expenses
Knowing where your money goes is the first step towards recognizing if you need to avoid getting into too much debt. Start by tracking every penny that comes out and goes into your bank accounts or credit cards each month. Checking your accounts online can help you easily monitor your spending habits. Avoid unnecessary expenses like eating out or buying expensive items that aren’t necessary for your needs.
2. Set A Budget
After tracking your expenses, the next step is setting a budget with YNAB app lets you know exactly how much money you have available each month for bills, food, entertainment, and other needs and wants. Having a budget will also help you avoid overspending, which can quickly lead to more debt than can be managed. Setting limits for yourself by creating a budget is vital to preventing excessive debt in marriage. For example, assigning a certain amount of money per week or month for groceries will ensure that no one spouse overspends, leaving less money for other bills or activities.
3. Talk About Money
It may not be an exciting topic of conversation, but discussing finances with your partner is vital to avoiding debt traps in marriage. You should always ensure both spouses are aware of their financial commitments together so that no one takes on more than they can handle without the other knowing about it. Open financial conversations will allow both partners to understand each other’s financial expectations.
4. Don’t Rely On Credit Cards
Credit cards often seem like free money, but this isn’t necessarily true. While credit cards may offer convenience when shopping online or at stores, they can quickly lead to high debt levels if used excessively. Try to rely on something other than credit cards as a payment method; cash whenever possible or prepaid debit cards. It will allow you to stay within your budget limits without running up huge credit card debts without realizing it until it’s too late.
5. Take Advantage Of Coupons And Discounts
Many people overlook coupons and discounts as ways to save money, but these are great ways to stay within budget while enjoying what life offers. Look up coupons online before shopping or dining at restaurants so that you only spend the necessary on something because it was the first price offered at checkout. Taking advantage of discounts also allows couples who want nice things but don’t have significant disposable income to quickly get what they need without breaking their budgets whenever something new comes along.
6. Get Professional Help If Necessary
Lastly, if all else fails and debt levels become unmanageable, getting professional help from a financial advisor might be necessary to get back on track financially speaking again as soon as possible. A financial planner can help couples create budgets specifically around their individual needs, including debts owed, so they can start paying off those debts responsibly while still having enough leftover funds after monthly bills are paid to cover basic living expenses like food and gas.
Conclusion
Recognizing and avoiding debt traps in marriage is something no couple should ever take lightly. Following these six steps should help couples identify any potential pitfalls before it’s too late and give them the tools needed in order build healthy financial habits together which focus primarily on savings rather than spending beyond one’s means due solely to impulse purchases or lack thereof knowledge regarding available discounts and coupons when shopping around town. Ultimately doing all these things should help couples avoid getting stuck in an endless cycle where their debts become unmanageable, leading them down paths neither partner ever wanted nor anticipated happening once married life began together.