While you might think it’s possible to avoid debt when combining to households, the truth is: debt is almost unavoidable. However, that doesn’t mean there aren’t ways to either reduce or eliminate its impact on your joint finances. The key is simply knowing what to do and that means communicating with your significant other in order to establish a financially solvent game plan.
Pay Cash for Everything
The biggest thing you can do to reduce or eliminate debt is to pay cash for everything you own or intend to own. As a couple, this means combining your finances and creating a joint budget that shares responsibility for paying bills and managing money. By doing so, you increase you buying power for big ticket items that you need to purchase as a couple, and increase your potential to save money.
Before combining your household incomes, you need to have an honest conversation with each other about money and find out the best plan for your joint needs.
Consider Debt Consolidation
If the two of you have individual debts and you want to reduce your monthly payments or interest rates, you may want to consider combining them by consolidating your debt into one payment. Doing so not