Talking About Financial Issues is the Key to No More DebtApr 18, 2017
You’ve likely heard financial advice that emphasizes the importance of discussing money and debt before tying the knot. While this is certainly an important step to take in order to ensure both partners are on the same financial page, these discussions shouldn’t stop once you are married. In fact, talking about financial issues is an important step to take when working toward having no more debt. Here are some important tips for talking financials with your partner.
1.) Be honest
Are you always honest with your partner about how much you spend and how much debt you owe? If not, you are certainly not alone. In fact, a BDO poll shows that over half of all Canadians prefer telling ‘white lies’ instead of telling the financial truth in an effort to protect their loved ones from worry. Although it can be tempting to ‘bend the truth’ in an attempt to minimize any issues or concerns you may be experiencing, when it comes to spending money and not taking on more debt, honesty is essential. Not only does it help to build trust in the relationship, it also means that both partners have a clear understanding of their financial situation and can work together in order to reduce debt and achieve important financial goals.
2.) Focus on solutions
While being honest is important when it comes to money and debt, it’s also important to avoid the blame game. If you and your partner are troubled by the amount of debt you carry and are looking for ways to reduce it, be careful to avoid pointing fingers and assigning any blame. Instead of focusing solely on your debt problems, choose a more constructive approach and focus on the debt solutions available to you such as budgeting, consolidating your debt, or even filing a consumer proposal.
It’s important to understand, however, that not every debt relief solution is the right fit for every couple. Although some may be able to use debt consolidation in order to effectively reduce their debt, it may not be the best solution for another couple. Explore and research your options together, including the inherent pros and cons. A visit with a debt relief professional, such as a credit counsellor or Licensed Insolvency Trustee, can also provide you with the background information you need in order make your decision.
3.) Schedule it
With many couples living busy lives with hectic schedules, it can be hard to set aside time to discuss your finances and make plans to take on no more debt together. Unfortunately, neglecting these important conversations can lead to even bigger problems. Make the time to discuss money with your partner by scheduling it. Whether it’s a weekly or monthly meeting, setting up a scheduled meeting helps your debt discussions to become a priority. You can even add a little fun to the process by scheduling a ‘financial date night.’
Do you talk honestly and openly about your finances with your partner? How does it help you pay off debt? Share your thoughts with BDO Alliston using the hashtag #BDOdebtrelief #LetsTalkDebt.