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How paying off debt can help a marriage

On Behalf of | Dec 21, 2018 | Divorce

Alabama couples planning to tie the knot might want to get out of debt before getting married. For those who are already wedded, it’s a good idea to make tackling debt a priority. According to a survey by Fidelity, over half of couples are already in debt when they enter a relationship. Around 40 percent of respondents said that financial burdens created a relationship strain. There are also cases in which couples do not start out in debt but they fall into it as they buy things in an attempt to save a strained marriage.

Couples who want to get out of debt must start by understanding exactly how much they owe. Many people underestimate how much student loan or credit card debt they have. They may also be embarrassed about having to make lifestyle changes to take care of deficits. However, once they begin to talk honestly with one another about the debt, they can begin solving the problem.

Couples may want to work with a financial professional. They should create a budget and choose whether they will use the “avalanche” or “snowball” method for debt reduction. For the avalanche method, the debt with the steepest interest rate is paid off first. As for the snowball technique, small debts are paid first. Couples may also want to consider a prenuptial or postnuptial agreement.

Negotiating property division, alimony and child support might be even more difficult for couples who have split up over financial issues in the first place. However, they may be more satisfied with the outcome if they settle an agreement instead of going to court. Ultimately, negotiating with legal assistance could cost them less in money and time.

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