How to deal with debt as a couple
Here are a few strategies for dealing with debt as a couple:
Create a budget: Create a budget together that includes all of your income and expenses, including your debt payments. This will help you see where your money is going and identify areas where you can cut back.
Prioritize debts: Prioritize your debts from most important to least important. For example, prioritize debts with the highest interest rates, or debts that are in collections, or debts that could lead to legal action.
Make more than the minimum payments: Making only the minimum payments on your debts can prolong the amount of time it takes to pay them off and increase the total amount of interest you pay. Try to make more than the minimum payments when possible.
Consider consolidation: Consider consolidating your debts into one loan or credit card with a lower interest rate. This can lower your monthly payments and help you pay off your debts more quickly.
Communicate: It is essential to communicate with your partner and make sure you are on the same page. Schedule regular check-ins to discuss your progress and any changes you need to make to your plan.
Consider seeking professional help: if the situation is too complex, you both can consider seeing a financial advisor, debt counselor, or credit counselor to help create a plan and get the advice you need.
It is worth mentioning that most important part is to address the root cause of the debt and take actions to prevent it from happening again. If it is because of overspending, shopping addiction or lack of financial planning, you may want to address those as well.