Debt Confessions: How to Reduce Debt TogetherFeb 14, 2018
How often do you and your significant other talk about personal finances? Do you work together to reduce your debt or do you change the subject when the topic comes up?
Here are just a few surprises that Canadians revealed in our poll:
- Many Canadian couples aren’t having regular money talks. One in three Canadians say they rarely or never discuss personal finances with their significant other.
- Canadians aren’t always aren’t always truthful about their debt with their spouse or partner. One if five Canadians have never discussed their debt load with their partner.
- Canadians are keeping financial secrets. The most common secret people keep from their significant other: spending habits.
- Not all Canadians love their partner’s financial habits. Six out of 10 Canadians would like to change one of their partner’s financial habits, with 22 per cent of that wanting to make three or more changes to habits.
- A lot of debt seems to discourage honesty. Canadians that carry the most amount of debt are the least likely to talk openly about it with their partner.
The fact that those carrying the most debt are the least likely to talk about it may stem from feelings of embarrassment or shame. It’s important to remember that debt problems can happen to anyone, and keeping them hidden can just exacerbate the issue and create more stress in a relationship.
Open and honest conversations with your partner about debt can help change your perceptions about getting help with debt.
It’s important to know how your debts impact each of you. Make a list of all of your debts, making a note of which are individual debts and which are joint. Any missed or late payments on the joint debts will impact both of your credit ratings.
If you or your partner are carrying a large amount of debt try speaking with a Licensed Insolvency Trustee in St. Catharines. Think of it as a fact-finding mission. During a first consultation the LIT will go over all of your debt relief options. There’s no obligation to move forward. It’s one way to get a better understanding of all the options available to help with debt and which one might be best for you and your partner.
On top of speaking with a debt relief professional, there are a number of steps you can take at home to boost your efforts as a couple to reduce debt. These can include:
- Working from a budget
- Creating debt repayment and long-term savings goals using a goals worksheet or an online calculator.
- Trying debt repayment methods that help you reduce debt by paying less interest or paying off your smallest debts first.