Understanding and Tackling Debt Together as a Married Couple

Getting married is an exciting time that marks the beginning of the rest of your lives together. As you merge your lifestyles, you might also decide to merge your finances, which includes tackling any existing debts together. Fortunately, two people aligned with the same goal can accomplish even more than they would've individually.

Here are some tips to help you tackle debt together as a team.

Discuss Your Debt Together

Before getting married, it's essential to have an open and honest conversation about your finances, including any debts you each have. This discussion helps you understand each other’s financial situation and create a plan for managing your finances and debt moving forward.

While this topic may seem intimidating, here are some tips to have the best conversation with your partner:

Make The Debt Conversation A Date

Talking about finances wouldn't traditionally be considered a romantic evening. But who says it can't be? Turn this potentially difficult conversation into a date and see how much fun it can be.

• Put it on the Calendar — Set a date and time and put it on your shared calendar. That way, both people know when the date is happening and can not only prepare but also get excited.

• Pair the Date with Food — Food makes almost every date better. Cook a meal together, or if you have room in the budget, order from your favorite restaurant.

• Set the Mood — Whether you have the conversation at your kitchen table or on the couch, find fun ways to elevate the vibe. Clear the space, play music, light candles, or do anything else that’ll make the “date” more fun.

Use A Conversation Guide

Going into a financial conversation without a topic guide is like going on a walk in the woods without a compass — you might go off course or even get lost. Here are the topics we recommend hitting during your conversation.

• Career Ambitions — Start the conversation with something exciting. Discussing your career goals is the perfect transition into tougher topics. Share your current progress and discuss ways you can support each other on your professional journeys.

• Retirement Goals — It's never too early to start looking toward your future together. Talk about what you want retirement to look like. This makes it easier to design a financial plan that fits your vision for the future.

• Current Debts — Now that you're warmed up, it's time to talk about current debts. Each partner needs to be transparent and understanding during this part of the conversation.

• Spender vs. Saver — Talk about your spending habits. Are you a spender while your partner is a saver? Create a plan for how you can encourage each other to make the best financial decisions together and stay out of debt.

• Financial Goals Moving Forward — If tackling debt is your goal as a couple, you must make a plan to move forward together. We have more advice on how to do this below.

Each of these topics is important, but may take a lot of discussion. Don't stress if you can't complete the whole conversation in one sitting. It's more important that you give every topic the time it needs than rush through to finish. Simply schedule as many financial dates as you need to complete the list.

Understand Your Debt

To share your debt, you need to know your debt. We recommend each partner review their own accounts and go into the debt conversation prepared. To make preparing easier, here is the debt list.

• Credit Card

• Student Loans

• Car Loans

• Business Loans

• Personal Loans

• Home or Property Loans

Make a Plan To Pay Off Debt Together

Now that you've had a conversation about your current debt and financial situation, it's time to make a plan to move forward together. Here are our top tips for couples looking to build a strong financial future together.

Create a Joint Budget

Develop a budget that includes both incomes and expenses. Account for debt repayment while making sure you can still cover your everyday living costs. A joint budget helps you see the bigger picture and prioritize paying off debt as a team. For more information about how to create a budget, read How to Create a Budget in 5 Steps.

But if you need more, here are some tailored tips to help couples tackle debt together.

• Work Together — Sticking to a budget is easier when you have a say in its creation. One of the best tools for success we can offer you as a couple is to work together when it comes to establishing what should and shouldn't be included in your budget.

• Consider Debt Consolidation — If you have multiple separate debts, consolidating them into a single personal loan with a lower interest rate can simplify repayment and potentially reduce how much you pay in interest over time.

For more tips about combining finances and how to create a budget together, read How to Marry Your Finances After Getting Married.

Use Smart Budgeting Tools

You don't need to be a math whiz to budget. Nowadays, there are tools that make budgeting fun and even easy. Here are the top tools we recommend to couples as they work towards taking control of their finances together.

• Debt Snowball Calculator — The debt snowball method is the key to eliminating your debt faster. It's designed to keep you motivated by first focusing on quicker wins. Put both partners’ debts into the calculator and it will lay out a path to help you crush the debts together.

• Change it Up — Saving extra money to put towards debt doesn't need to be difficult. Change it Up automatically rounds up your purchases to the nearest dollar to help you pay down debt faster.

• Automate Payments — Set up automatic payments to ensure you never miss a due date. This helps avoid late fees and keeps your repayment plan on track.

• Talk to an Advisor — If debt becomes overwhelming, remember you two aren't in this alone. Seek help from a financial advisor or credit counselor. These professionals can provide guidance and help you develop a plan to manage debt effectively.

Host Monthly Money Meetings

Stay on the same page and make budgeting romantic with a monthly money meeting date. Just like the debt conversation date we discussed earlier, you should add this conversation to your calendar and make it fun for both parties. We recommend you follow many of the same atmospheric recommendations, but here’s an updated conversation list you can follow.

• Celebrate any financial wins — big or small.

• Discuss last month’s budget.

• Identify specific goals for next month’s budget.

• Raise any upcoming financial concerns and discuss.

• Review progress on overall financial goals.

Build a Debt-Free Future

Paying off debt together is a journey that requires patience, discipline, and teamwork. As you work towards financial freedom, start building habits that'll not only help you eliminate debt, but also help you stay out of debt.

• Save Regularly —Set aside money for emergencies with an Emergency Savings Account to be prepared for anything that comes your way, and open additional savings accounts for your future goals as a couple — like a honeymoon, or planning for a family.

• Spend Wisely — Revise your budget as needed and avoid impulse purchases by waiting at least 24 hours before making a purchase.

• Celebrate Your Milestones — Be sure to celebrate your financial wins and celebrate each positive step you make along the way. Once you complete a goal, find out your next Money Milestone to stay on track and receive a personalized plan with next steps.

Managing debt when you get married can be challenging, but it’s also an opportunity to build a strong and rewarding financial foundation together. By understanding how debt works and working together as a team, financial freedom is possible for you both! Remember, the key to success is collaboration, communication, and commitment to your shared financial goals.