If your spouse brings debt into your relationship, should you help them pay it off? Or even, should you pay it off entirely?
When it comes to personal finance and relationships, deciding whether to help your spouse with their debt can be a bit of a puzzle (and they might not even WANT that help!).
We could also ask the same question for non-married partners – but that is SO much more complicated because they are still separate entities. So we’ll concentrate on married couples for now.
In this blog, we’ll explore the pros and cons of partnering with your spouse to accelerate their debt paydown plan. By the end, you’ll have a clearer picture of how to strike a balance when making this decision, all while keeping your financial goals and relationship harmony in mind.
Points In Favor Of Helping Pay Off Your Spouse’s Debt:
- Faster Long-Term Savings: Working together to chip away at the debt will speed up the payoff timeline (since you’re using both spouse’s incomes), saving money on interest in the long run.
- Alignment of Joint Financial Goals: Helping pay off your spouse’s debt demonstrates your commitment to shared financial goals and aspirations, fostering trust and teamwork within the relationship.
- Improved Credit Scores: Helping pay off your spouse’s debt can boost their credit score, which in turn can benefit both of you when seeking loans together.
Points Against Helping Pay Off Your Spouse’s Debt:
- Potential For Personal Growth: Paying for the debt on their own is a way to take ownership of it. That ownership may be what they need to get intentional about changing spending habits (specifically referring to credit card debt here, not student loans or medical debts).
- Financial Independence: When you split all of your shared expenses equitably, it makes sense to maintain separate payments for any debts that aren’t shared. Sometimes it’s important to maintain financial independence from your spouse – for a variety of technical and personal reasons that differ from couple to couple.
- A Quick Fix Versus Addressing The Issue: Helping pay off your spouse’s debt without addressing the root issues can gloss over unspoken disparities in financial values, potentially leading to future conflicts.
Ultimately, the decision to help pay off your spouse’s debt should be made after carefully considering the specific circumstances and the impact on your relationship and individual financial goals. Open and honest communication is essential when making this decision.
Bottom line, there is no one, perfect solution across the board. This shows the financial perspective, but every couple has to decide what is right for them.
One way to start is to look at Undebt.it – an excellent, free online tool designed to help you organize your debts, create a personalized debt payoff plan, and track your progress.
And by the way, financial planning helps people balance their approach with debt payoff so it’s not JUST about the numbers, it’s also about moving you closer to your big goals. Take a look at our team of planners, just ready to help!
