Debt Management
Maintaining a healthy relationship isn’t always easy, and added stress from one partner’s debt could cause even more challenges. If it isn’t managed carefully, it could lead to frustration stemming from something as simple as fewer date nights to something major, like an inability to contribute to the monthly bills. Read on for a few tips on what you should do when your partner has debt, how you can offer your support, and how you can work together to reduce the financial stress in the relationship.
Gain perspective
Communication is key to a healthy relationship. When you first learn that your partner has debt, it’s important to sit down and talk about it. In this conversation, you should cover:
- How the debt was accumulated
- How each of you feel about the debt
- What repayment plans are in place
- How long it will take to pay off the debt
Approach this conversation without judgment and make it clear that you want to understand their perspective. If your partner becomes defensive or uncomfortable, give them space and agree to revisit the conversation later.
Offer support
Offering financial support by helping your partner pay off their debt isn’t always an option for everyone. Fortunately, there are other ways you can offer your support, such as:
Help to create or improve a repayment plan
Repayment should be a top priority and if there isn’t a repayment plan in place, this could be a great opportunity to help them determine the best plan for their situation. There are various repayment methods available and our Debt Manager can help by letting you compare strategies and determining one that will work for your collective circumstance.
Make joint sacrifices
Making joint sacrifices can be a cost-effective way of supporting your partner during financially difficult times. By joining them in their efforts to save money and pay down debt, you can show solidarity and strengthen your relationship. For example, if your partner is cutting back on eating out, commit to doing the same. This not only saves money but also allows you both to spend quality time together.
Provide motivation
Paying off debt can be a challenging and draining process. Your partner may experience moments of doubt or lose motivation. During these times, it’s important to be their cheerleader and remind them of their progress. Encouragement and support can go a long way in helping them stay on track.
Avoid judgment
People dealing with debt often feel guilt, shame, and maybe even depression. Avoid adding insult to injury by judging their situation. Instead, focus on being positive and understanding. If you need to discuss finances, do so tactfully and compassionately. Validate their feelings and offer practical solutions without criticism.
Discuss more financial topics
Once the topic of debt is on the table, it’s a good opportunity to have broader conversations about finances. Share details about your own financial situation and encourage your partner to do the same. Discuss topics such as borrowing history, credit scores, savings accounts, and investment accounts. Open and honest communication about finances can help you both identify mutual goals and plan for the future.
Meet with a financial planner
If you and your partner are struggling to navigate the complexities of debt, consider meeting with a financial planner. A professional can provide expert guidance and help you develop a plan to achieve your financial goals. It may be helpful for you both to meet with an unbiased third party to discuss the debt and determine an appropriate course of action.
Remember, debt should not be a deal-breaker in your relationship. With open communication, support, and understanding, you can help them take control of their finances and work toward a debt-free future together.
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.