When in a relationship, most couples never want to have “the credit talk”. While speaking about your credits is the least fun thing to do as a couple, it’s so important because it may have a negative impact on your financial state. Speaking about your credits helps you to plan your financial future together as a couple. It’s really important to remain open and disclose any information that you may have regarding your personal finances even though it may uncover some hidden skeletons in your past.
Have you just realized that your partner is not financially stable? Perhaps he/she is struggling to rebuild their credit after years of poor financial management. It’s time to have a serious talk on how you will address the credit situation because it could have an impact on your finances too. Don’t feel too shy to speak it out for fear of coming out as selfish or shallow. If it’s a good relationship, then both parties should be willing to freely discuss the finances and work towards improving them. The last thing you want is to move into a house or own a car then have collection agencies giving you no room to breathe.
You may need to make changes in your lifestyle in order to sort out your current financial situation. Whether it means getting out of your lease and looking for a cheaper house or getting rid of credit cards that are too expensive to own, these changes can help you to avoid falling into further debt. If you are renting an apartment but your partner is unable to pay their own share, your savings may begin to run out quickly. Make changes in your everyday expenses to save more.
This is one of the mistakes couples make due to fear of being misjudged. You need to be open with your partner regarding your financial status before getting hitched. There’s a high chance that you will be combining multiple incomes and expenses so you need to know where you both stand financially. Poor credit can affect you as a couple and also have an impact on your children. You should take steps to make smart investments or even start a savings account that will help you clear any pending debts faster.
If your partner’s financial situation is very worrying, you may want to consider signing a prenuptial agreement (if you are married). These contracts were created to help safeguard both parties in the event of financial issues that arise incase of unfortunate cases of divorce. You can divide your assets as you want and agree on how to go about issues during a divorce. All in all, have an in-depth conversation with your partner if you are afraid that he/she might be stuck in debt. You may consider debt repair Toronto for your partner and secure a solid financial future together.