Discussing debt with your partner can be overwhelming. Here are a few tips to help you or your partner get out of debt.
Africa Melane speaks to Annaline Van Der Pool, COO at Debt Rescue about ways you can help your partner with their debt.
Working together on debt management is a team effort
Setting a budget is critical to reaching financial goals
Frequent and open communication is important to track the relationship’s financial status
Debt affects the entire household according to Van Der Pool.
If one of them is struggling and is unable to meet their financial commitments, it’s going to trickle through into the relationship and into the household.
Whether you are married, living together, or have children, one or both partners having debt can affect the relationship.
To avoid getting overwhelmed here are some tips to follow to get rid of some of that debt:
- Frequent communication is key
Be open about your financial situation so that you and your partner can work on solutions together. If you are entering a new partnership, especially a serious one that could include sharing a bank account or buying property together, it is important to be transparent about your current debt situation before making joint decisions, advises Van der Pool.
- Getting into the habit of budgeting is critical
Budgeting allows you and your partner to keep track of all expenses and enables you to adjust your budget according to fluctuating living expenses or savings for new goals.
Do a monthly check-in where you can review the past month and discuss what worked and what didn’t. Avoid waiting too long between the check-in as this will become the dreaded budget discussion and can cause unnecessary anxiety in the relationship.
Use these check-ins to discuss savings plans for joint goals and things to look forward to together.
Money is always a sensitive topic, whether you’ve been together for a short, medium or long term situation.
- It’s a team effort
Remember, working together on debt management is a team effort and will require patience, compromise and a shared commitment to reach your financial goals.
With open communication, a budgeting plan, and a strategy for paying off debt, you and your partner can work towards a debt-free future.
