References on bringing credit card debt into marriage
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Dont Save When You Have Debt.
 People are curious creatures. We don't always do whats right for us - instead, we do what feels best, and try to blot out any reasons why it may not be the best thing to do. Maybe that's why there are so many people who have both savings and debts.
Its an Issue of Psychology.
Yes, it feels better to save. Saving makes you feel like you're building a base for your future, whilst paying off what you owe feels like you're throwing your hard cash in to a hole. That money is for the kids education, or for doing up your place of residence, or whatever else - and it's in an bank account earning a valuable rate of interest. What could be wrong with that? A great deal, if you owe money.
Dont Be Fooled.
There are virtually no savings companies that will give you interest rates anywhere near as high as the ones credit cards wrest from you. Heres a question: if you have $10,000 in a savings account bringing in 5% per year and $5,000 on a credit card at an interest rate of 20% per year, how much money do you have? After only five years, the answer is effectively $0 - your debt would have grown to in the area of $12,500, the equivalent sum of money that your savings are now worth.
You may not think it now, but it truly is a great deal better to pay off your debts. If you utilised half your savings to pay off that debt, youd be in a much better spot that it's really astounding. You avoid five years of compound interest on the debt, but you still get to keep $5,000 in your bank account, bringing in interest - after five years, that's approximately $6,380.
If youd still prefer to keep your savings intact rather than using them to pay off your debts, ask yourself this elementary question: is your pride worth $6,380 of your familys cash?
Think of Your Financial Health.
Once you get sufficient cash to pay off your debt, theres absolutely no logical reason to hang on to it. Debt is for people who don't have the money, and have to borrow it. Debt costs money, and savings make money - you need as much of your financial resources as possible to be savings, not debts. If your savings account and credit card are with the same savings bank, then youre effectively paying for the privilege of borrowing your own money from them. Why would you do that?
There are more advantages to getting rid your debt using your own savings. Youll be less stressed about your debts, and your credit report will show that you were able to pay everything back - resulting in getting you a much smaller interest rate if you ever have to go into debt again.
I know it's hard. You just have to be mindful that any cash you've saved hasnt actually been saved at all. Its money you should have been spending rather than making purchases with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your children's education - but always remember that whenever you use a credit card to spend that same money, youre spending away your future, plus interest. In any event, if you've got the debt, then that money has already been spent - stop denying it to yourself.
Im rich, he isnt. Should I get a prenup? Today: Money. MSNBC.com If you're bringing significant assets into a marriage. Getting out of debt can seem overwhelming. Between credit cards, rent or mortgage payments. Bankrate's Guide to Managing Your Debt: Debt has the power to. but a wallet full of credit cards. Debt has the power to wreck a marriage. Marriage going stale? Take that seductive plastic out for a night on the.
Marriage and Finances We had $22000 in credit card debt plus student loans when we married. Not 'Marriage' Gifts. I don't have much to say about getting out of debt besides. Marriage and Money: Getting Priorities Straight. Financial Support. After paying off their credit-card debt, they developed a budget that kept them formula for bringing intimacy back into marriage was chronicled on Good. Forum for Family and Consumer Issues, Vol.
9, No. 1. Editor's Corner Research shows that debt brought into marriage is the number one problem area for Credit card #3. Credit card #4. Home mortgage. Department store debt. Some 'money questions' for your betrothed Bills and debt What bills and debt are each of you bringing into the marriage? For what purpose is it acceptable to use credit? Do you use credit cards. For Richer, For Poorer If one, or both, of you is bringing credit card debt to the altar, So, I don't think we should get ourselves into too much debt, says he. |
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