Does a couple’s debt affect their relationship? Or does a couple’s relationship affect their debt? Are finances and relationships just another variation of the classic ‘what came first: the chicken or the egg’ debate? Regardless of which comes first, debt impacts relationships just as much as a couple’s spending habits.
As the infographic below illustrates, debt can lead to the breakdown of a marriage and the breakdown of a marriage can cause some to become insolvent. It turns out 36% of couples do not discuss their debts before getting married, while 46% of couples acquired more debt after they became a couple – creating even more financial stress on the relationship.
To help prevent debt from wedging a divide in your relationship, discuss your debts with your spouse. Discuss both individual and joint debts to get a clear picture of what you owe together. Then make a plan to manage the debts as a family and create a repayment plan and a budget.
And how about being a single parent after divorce? Single parenting adds significant financial strain that can often lead to insolvency. Almost 1 in 5 insolvent debtors are single parents. Many are struggling with student debt which is difficult enough to pay, without the added burden of raising a family financially on one income.
View the infographic for more details on how debt affects relationships and vice versa: