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Partners with Debt

Hello Readers,

Do you have debt?


Those of you with significant others: did you take on your partner's debt? Is it their responsibility? What about your own debt? Is it your responsibility or is your partner helping you?


It's crucial to have an open conversation about your respective debt BEFORE entering the binding contract of marriage. You need to agree upon how you will tackle debt as a team or on your own.


Contrary to popular belief, infidelity is NOT the leading cause of divorce: financial issues are.


Kevin O'Leary suggests that each partner in a marriage should have their own bank account in addition to a shared account. This is an extra protective measure for both parties and I will definitely be doing this in my own marriage.


In regards to paying down loans, Dave Ramsey's "Snowball" method is a great way to knock them out. He suggests starting with the smallest loans to get them off your plate and then working your way up from there.


Another great method is to pay off loans with the highest interest rate and work your way down. I recently spoke to someone whose trusted family members are taking out a loan with lower interest rates on their behalf. The individual will be able to pay off their high 6.5% interest loan immediately and will then pay their family back over time instead.


There is no single right way to get yourself out of debt, but you should absolutely work to become debt free. It is a principal component of the journey to FI-RE.


Happy savings,

Lady

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