Polo Funding has begun flooding the market with debt consolidation and credit card relief in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2019 Reviews, the personal finance review site, has been following Polo Funding, Jackson Funding, Tiffany Funding, Nickel Advisors, Coral Funding, Neon Funding, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).
When it comes to a long-term partnership of marriage, there are a few things that you must discuss with your partner beforehand. Because sharing a life means sharing all the good and bad that comes with the person you’re choosing. Debt is one of those things. If you or your spouse carry outstanding balances, you’ll have to bring it under discussion, just like other aspects of your life.
Apart from discussing living situations, the prospect of children, and long-term career plans, finances are another essential factor to bring to light. You need to have an open conversation with your new or future partner about sharing finances, including debt. So, should you help pay off your spouse’s debt?
Here’s all you need to consider:
Learn about their current financial and debt management strategies
As you enter this new partnership together, it would be best to discuss shared goals. When you start planning for goals like financing a wedding or buying a home, both of you will have to come forward with your financial histories. This will be an excellent opportunity for you to get a closer look at their credit history, credit score, and of course, debt. Use these times to initiate a deeper conversation on shared financial goals and future plans.
You can also start by talking about your own financial history and debts (if any). It will help your partner feel comfortable about opening up about their finances. When both of you have come forward with your financial histories and current situations, you’ll have to start working on an action plan. Moving forward, it’s extremely important to be on the same page about finances.
When it comes to paying off your respective debts, you’ll have multiple approaches to choose from. But before deciding anything, you need to ask your partner how they got into debt, and what are the strategies that they’ve incorporated to eliminate it. This information will enlighten you on how your partner manages money.
For instance, if they say they’ve been consistently working on paying off their student loans, that indicates their good sense of investment. If they have outstanding medical bills from the time of employment loss, their commitment to pay them off by working overtime is another positive sign.
However, if their debt involves overdue credit card bills filled with multiple unnecessary purchases each month, then it could be an indicator of a serious financial issue. This could be keeping your partner from financial stability and giving them emotional and mental distress.
To put it in simple words, exploring the history of your partner’s financial patterns and habits will help you understand their philosophy about money and financial management. It will also help you realize whether their values align with your own when it comes to money.
Should I pay off my spouse’s debt?
We would recommend only considering this question if your values align with your partner’s when it comes to finances. If not, it may be time to sit down and have a detailed conversation to find common ground.
If your values do align and you think your partner requiring help with their debt is a one-off thing, then you’ll have to consider a few things before saying yes. First, you’ll need to make sure that your own finances are on the right track. If your financial situation is stable and you can help your partner without going into debt yourself or exhausting your emergency funds, then go ahead with helping them.
One way to do that is by making the payments towards their debt from a joint checking account. It will increase the pace of paying off debt with two people contributing.
You must also consider the possibility of the worst-case scenario. No relationship is perfect, and there’s no certainty if it would work out in the long-term. That’s why you should agree to help after considering how you’d feel if the relationship ends after you help pay off their debt.
If you’re married at the time you help pay off the debt, then there may be options for protecting yourself in case of a split. But if a relationship ends and you helped pay off your partner’s debt whom you aren’t married to, you may have to live with regret. That’s why its essential to be sure. It doesn’t mean you shouldn’t help your partner. It just means that you’ll have to consider all possibilities before doing so. You also have to consider if your generosity will negatively affect your debt ratio.
Other things you need to consider include the impact of this decision on your shared goals. If you plan on buying a home as newlyweds, how would the decision of prioritizing to pay off your spouse’s debt impact that? More importantly, would your spouse’s credit history impact your shot at qualifying for a new home?
In the case that you decide to help out, it’s important to have an open conversation about what that would entail. You’ll have to communicate your terms of assisting them clearly. It’s essential for both of you to be equally involved in the process. Make it clear how much each of you would be contributing, and then celebrate your joint success together.
The final decision depends on how well both of you communicate and if you are in the position to help out. It’s essential to discuss as many aspects of this shared goal as possible.
How to help pay off your spouse’s debt?
There are several ways to help your partner pay off their debt. Not all of them means you’ll have to make a direct contribution. You can also help your partner by offering to pay more towards your shared bills, so they can put the money saved from it to pay off debt.
If you can’t help them out with money, you can help them out with a strategy. Help them identify their bad financial habits and designing a budget. If both of you have debts, you can consider consolidating them and then paying them off quicker together.