In Love and In Debt: How To Break Up With Your DebtFeb 13, 2018
You love them, but you don’t love their approach to managing money and debt. A recent poll conducted by Ipsos on behalf of BDO Canada reveals that almost 60 per cent of Canadians wish they could change some of their partner’s financial habits.
Whether it’s a overspending or lack of a budget, not saving enough for long-term goals or not keeping track of spending, a financial disconnect between you and your partner can lead to money and relationship issues. It will also make it harder to avoid debt and find relief from the shared debt that you owe.
When it comes to dealing with debt as a couple, it’s important to remember the three T’s: teamwork, trust and tracking. Here’s how the three T’s can help you and your partner break up with debt and regain financial stability.
Working as a team is essential when it comes to managing your finances and your debt. It’s important that you and your partner share the same short and long-term financial goals, including goals for reducing your debt load.
Schedule time to sit down with your partner and discuss your finances, review your debt and create mutual financial goals. These goals can help you work together to create a plan that focuses on achieving them.
For the plan that you created together to work, honesty and trust is key. Unfortunately, our poll indicates that some couples may not always be honest with their partner when it comes to money and debt. In fact, nearly one third of couples avoid conversations about debt or hide financial information from their partners.
Although you may have been less than honest with each other about your debt in the past, it’s time to focus on the future. Make a promise to always be truthful with each other when it comes to your money and debt and don’t shy away from financial discussions. By making this pledge, you’ll ensure that communication about your money is always open and honest, and you’ll avoid any nasty financial surprises that could arise otherwise.
Finally, once you’ve created mutual, shared goals and pledged to be honest and open about your money and your debt, it’s time to track your spending and your progress. It’s a good idea to use a household budget to help track and manage your spending. A household budget not only allows you to plan ahead, it also provides a good way to monitor your spending and can help you avoid overspending.
If you don’t currently have a household budget, creating one is simple. This budget worksheet will help you get started. If you have any questions about budgeting, a credit counsellor or Licensed Insolvency Trustee can work with you and your partner to help ensure the budget you create is realistic and will help you reach your financial goals.