How to Help Your Partner Get Rid of DebtMay 09, 2017
Financial problems can be frustrating. They can also be hard on a relationship. For many committed couples, “through richer or poorer” easily comes to fruition, with high costs seeming to hit them from every direction. If your partner has debt they need help with, here are some strategies that might help you help them.
Even if one of you is currently struggling with debt more than the other, it’s likely you could both benefit from increasing your financial literacy. There’s a lot to learn about debt. Doing so can help you understand how debt is affecting your financial well-being and how you can help each other avoid debt moving forward. Learning the ins-and-outs of debt is especially helpful if you or your partner rely on high interest credit cards or payday loans that can be difficult to pay back.
For many people dealing with financial problems, they have feelings of embarrassment or shame about their debt, and anxiety and fear can make it difficult to identify a solution. The emotional and physical ramifications of debt can be devastating. For some people, part of dealing with their debt is dealing with the emotions and physical impact they’ve experienced. Helping your partner to identify and resolve some of these issues can help you move forward with creating a plan.
There are ways to manage finances that can help consumers alleviate the pressure on their finances. Building a budget that best reflects your financial state and your financial goals is a good place to start. Money management techniques like using money trackers and compound interest calculators can help you make decisions about your spending and debt repayment priorities. Priorities could include paying off high-interest debt first, or seeking a debt consolidation loan to reduce the burden of your unsecured debt.
Help them find help
There are times when debt is more than you or your partner can handle. High debt levels can make it difficult or impossible to both make debt payments and cover the costs of living. If that’s the case, and you’re afraid the debt may become unmanageable, it’s best to seek professional help as soon as possible. Asking for help can be difficult, so support your partner by helping them find a trustworthy professional to talk to.
A Licensed Insolvency Trustees (LIT) is qualified and available to review finances and give you or your partner feedback about existing debt. Formal debt options, like a consumer proposal and bankruptcy, are available when debt is unmanageable. An LIT is able to determine if either of those debt solutions are suitable.
It’s difficult to watch someone struggle with debt, especially when their debt might be impacting your life, too. You can help your partner manage their money and eliminate their debt by being supportive and engaged in their learning and planning process.
How do you manage the emotional effects of debt? Tell us on Twitter. #LetsTalkDebt, #BDOdebtrelief