How to Manage Debt as a Couple (When Only One Has Debt)

Talking about money is a stressful topic. However, this topic can multiply a hundredfold if the conversation is between romantic partners. It gets worse if only one of them has debt, and the other is debt-free.

Fortunately, there are ways to get into this serious topic of conversation without it elevating into a heated argument. Here are a few tips to help prevent what can be a calm conversation from evolving into an emotionally charged situation. 

How to Manage Debt as a Couple (When Only One Has Debt)

It may be a sensitive topic to talk about between partners if one is debt-free and the other one isn’t. However, it is possible to have a peaceful conversation about this and show support to one another.

1 – Open Communication Free of Judgment

Keep in mind that a person may be apprehensive about opening up about their debt, especially if they are aware that their partner does not have any. It is important to tread lightly and make sure that the person is made to feel safe when the topic is opened up. 

Show the person that there is no judgement and that both parties should look for a way to handle the debt as a team. They should ask important questions that will help get to the bottom of the problem (the debt) and look for possible solutions that both of them can do. 

2 – Realistic Support

Asking how large the debt is and how much the monthly payments are is the start of finding a solution together. Then, partners should do a computation together as to how much extra money they both have at the end of each month that they can put toward additional monthly payments. A detailed discussion on how they can possibly make the life of the loan shorter than it originally is should also take place.

The debt-free partner may have money in the bank that can help pay off the monetary obligations sooner. However, they have to consider how much monetary help they can realistically offer to their partner. On the other hand, consider that their partner may be able to pay the debt on their own, so simply offering emotional support may be a step in the right direction.

3 – Plan for the Future

It is important to look to the future as partners map out possible game plans to deal with the existing debt. It is important to avoid taking in more debt to prevent increasing the debt that is already there. Also, partners should both think about changing spending habits, especially if the debt was incurred because of impulse buying and bad spending habits. However, if one goes into debt because of student loans that helped them gain leverage and land an amazing, high-paying job, the loan would have been put to good use.

4 – Bring in a Third Party

After talking about it, it may be in a couple’s best interest to hire a third party to help assess the situation. A financial advisor can help advise people about the best steps to take moving forward. They will be able to offer an objective opinion and also concrete advice and tangible choices that both partners can consider to help make the situation better.

Conclusion

If one partner is in debt, it may not be a problem, especially if both of them financially are financially stable enough to repay the loan. However, it is important for partners to be on the same page and make sure that both of them agree on how they are going to reach their financial goals.

Debt Helpers offer customized debt solutions for all Canadians, providing a range of consulting services and debt solutions designed to help partners and individuals reach their financial goals. Interested parties looking for skilled debt consultants can reach out by calling 1-855-873-6222.