Focus on high interest debt first. If your partner has any higher-interest debt, such as a credit card, they should aim to pay the balance off first before paying extra toward student loans.
Before getting married, talk with your partner about the debt that you each have, whether that debt is “good” or “bad” and whether you should put a wedding on hold until you pay all, some or most of it off. Entering into a marriage with a boatload of already existing “bad” debt is overwhelming.
Marrying a person with a bad credit history won't affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts that you take on jointly will be reported on both your and your spouse's credit reports.
While being married is generally better for your wallet than being single, getting a divorce cancels that benefit — and then some. The OSU study shows that on average, divorced people have 77% less wealth than single people in the same age group.
Getting married and staying married for the long-term brings the opportunity for more financial security, provided that each spouse practices good family financial rules. Don't spend more than you have and limit—or eliminate—the use of credit cards.
Do You Inherit Debt When You Get Married? No. Even in community property states, debts incurred before the marriage remain the sole responsibility of the individual. So if your spouse is still paying off student loans, for instance, you shouldn't worry that you'll become liable for their debt after you get married.
When someone dies with an unpaid debt, it's generally paid with the money or property left in the estate. If your spouse dies, you're generally not responsible for their debt, unless it's a shared debt, or you are responsible under state law.
In common law states, debt taken on after marriage is usually treated as being separate and belonging only to the spouse who incurred them. The exception are those debts that are in the spouse's name only but benefit both partners.
The rule of thumb is to have roughly the equivalent of your annual salary in savings by then, experts say. If you earn $50,000 a year, for example, you should aim to have $50,000 put away.
Although it may be uncomfortable to bring up your financial obligations, waiting too long could make the debt into a much bigger deal than it is. Your partner could feel you've betrayed their trust, especially as the truth will come out eventually if you do move into a long-term relationship.
Furthermore, if you've married someone with bad credit, paying off their debt could improve their credit by reducing their debt-to-income ratio. This could later help the two of you qualify for a shared loan, like a mortgage.
The only party liable for your spouse's business debt is their business partner, not you – unless you are their business partner. Every business partner is completely responsible for any debts taken by the company. But simply being a spouse to someone doesn't make you liable for their business debts.
Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.
Delaying legal marriage can make a lot of sense financially if you are with another high income earner and you're pursuing some some of income-based repayment for student loans. Otherwise, most attendings have their loan repayment as an attending capped out at the standard 10 year plan.
Research has shown that the "marriage benefits"—the increases in health, wealth, and happiness that are often associated with the status—go disproportionately to men. Married men are better off than single men. Married women, on the other hand, are not better off than unmarried women.
Early marriage can lead to less satisfaction in mid-life, long-term study shows. Delaying marriage could make you happier in the long run, according to new University of Alberta research.
Paying the debt off now can help avoid nagging debt payments in the future. Without debt, your fiance's credit score will likely improve, which could help your chances to get a joint loan, such as a home mortgage, in the future.
Talk about debt when the relationship gets serious.
“Even if you're not legally bound, if your relationship is at a stage where you have joint goals and you can see a future together, it needs to be discussed,” said financial planner Cristina Guglielmetti, president of Future Perfect Planning.
Red Flag #1: Mismanaged debt
With that in mind, credit card debt can negatively impact you a lot more than other debt, since interest rates are substantially higher on credit cards than they are on student loans, mortgages, or other loans. Pro tip: It's important to keep in mind why someone is in debt.
(8) From that same verse, we have our second topic, “The Love Debt.” It becomes clear that, while we can strive not to owe anything, there is something we cannot but owe and that thing is LOVE. This means love is a debt which we naturally owe one another in the family, especially in the house of faith.