How Financial Debt Can Take a Toll on a Marriage
Personal finances are common topics that couples argue over, particularly if each person has a very different approach to spending and saving money. For couples who are just starting out, it is difficult to avoid accumulating some level of debt due to student loans, the high cost of living in certain areas, and other financial obligations. In addition, too many young people tend to live beyond their means and then find that they are drowning in credit card bills that they cannot pay. Unfortunately, this puts a great deal of stress and strain on a relationship.
According to a recent report from Student Loan Hero, a website for managing education debt, over a third of borrowers blamed student loans and other financial issues for their divorce. Avoiding debt can be a constant uphill battle since the typical millennial living in the city carries over $23,000 in debt. Yet, over 75 percent of Americans prefer a partner who is responsible with money to someone who is physically attractive. This makes sense since a partner with a poor credit rating can get in the way of securing a good mortgage rate.
Is a High Credit Score the Secret to a Successful Marriage?
Research conducted by the Federal Reserve Board found that the better your credit score is, and the more financially secure you are, the less likely your marriage will end in divorce within the first few years. If both people in the relationship have high credit scores, they are more likely to remain together, whereas couples who have mismatched credit scores are more likely to separate within the first five years of marriage.
The following are tips that can help either maintain a good credit score, or repair your credit score after a divorce:
- Check your credit report. Make sure everything on your report is accurate and up to date. There are several websites that can provide free access to your credit report. Many will also send e-mail alerts if anything changes.
- Build your own credit history. If your finances were in your ex-spouse’s name, you will have to establish your own credit. One way to do this is to apply for a credit card, if you use it wisely and pay it off as soon as possible.
- Pay your bills. Even if money is tight after the divorce, it is important to pay your bills, including your mortgage, rent, car payments, and credit card bills.
- Pay down your debt. Your debt ratio accounts for 30 percent of your credit score. This number is the amount of debt that you owe divided by the total credit available. Make it a priority to pay off your debt as quickly as you can.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Assist Clients with Financial Issues
If you and your spouse decided to divorce due to unresolvable financial issues, the Towson divorce lawyers at Huesman, Jones & Miles, LLC can help. We will walk you through the divorce process and discuss possible options that will help you recover financially. To schedule a free initial consultation, call us today at 443-589-0150 or contact us online. Our offices are in Hunt Valley and Towson, Maryland where we serve clients throughout the state, including the areas of Baltimore, Baltimore County, Bel Air, Columbia, Westminster, Essex, Monkton, Sparks, Parkton, Carroll County, Harford County, and Howard County.Posted on . This entry was posted in Divorce. Bookmark the permalink.