The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
When you exchanged vows, did you take a moment to actually think about what you were committing to financially? In the standard version, there’s something in there about “richer or poorer,” which means that you agreed to stand by your partner’s side even when liabilities exceed assets.
But it’s no secret that not all unions last forever.
According to the American Psychological Association, 40% to 50% of marriages end in divorce. It’s been widely assumed that a large percentage of these individuals had marital issues that stemmed from finances. In fact, a recent study conducted by assistant professor Sonya Britt of Kansas State University revealed that “arguments about money is by far the top predictor of divorce.”
If you’re in debt, finding a way out can be tough and frustrating, particularly if you’re not the one who incurred the expenses in the first place. Still, you and your partner must be on the same page to actually take action and dig yourself out of the hole.
Truth be told, there is no magic formula for eliminating debt. It just boils down to your commitment to get to the root of the problem and ax the outstanding balances in the most strategic manner possible.
Now, the part that you’ve all been waiting for. Drum roll please …
Reaching out to the creditor is the one of the most overlooked, yet simplest ways to drive down the accumulation of interest that can make credit card debt unbearable. If your balance is extremely high, a reduction of even a few percentage points in your interest rate can save you a substantial amount of cash.
The word “budget” is a bit militant, so I’ll use “spending plan” to make my point. Getting out of debt (and staying debt-free) will require you to be disciplined with your finances. That’s where the spending plan comes in, as it will dictate where your money goes before the month even gets started.
Need help creating one, even if money’s tight? Click here.
Eliminating wants or unnecessary expenses seems like a no-brainer, yet few people actually do so. Anything that is not a necessity needs to be reduced, or eliminated if possible, until you gain some traction in the debt-reduction process.
Unless management is handing out raises at your place of employment, you’ll want to increase your income in any way possible, whether it be through overtime, freelance work or a part-time job.
Received a surprise package in the mail? That’s both good and bad news, but we’ll cover the latter first. Sorry, but any extra income must be allocated to debt to pay it off as quickly as possible. On the other hand, the good news is that you now have another source to use toward debt.
Not sure how to get started? These concrete steps will help:
This post originally appeared on Money Talks News.
More from Money Talks News:
Image: iStock
May 30, 2023
Managing Debt
September 7, 2021
Managing Debt
December 23, 2020
Managing Debt