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How can having too much debt lead to a divorce?

On Behalf of | Feb 25, 2022 | Divorce

Married California couples who struggle with debt might end up calling it quits. A recent survey by a national bank determined that debt is a big reason behind divorce.

What can debt do to your relationship?

Often, debt is problematic in a marriage. If one spouse racks up sizable debt, it affects the other. If the other spouse had good credit before the marriage, this could change if the couple runs into financial problems.

Debt is a big reason why couples put off getting married. According to the survey, three out of five people said they did this to avoid inheriting their partner’s debt. Another 54% of people stated that debt is a good reason to get a divorce.

What can you do to minimize the problem of marital debt?

Even if you are planning on divorcing your spouse due to debt, you can minimize the problem. You might not have control over the debt your spouse accrues, but you can be smart.

Since you already have marital debt, you should avoid any new debt. If you have to make a large, important purchase, avoid using a credit card. Instead, turn to your debit card or cash. You might want to look toward an emergency fund just for this very purpose.

Keep a journal of your spending and create a budget that works for you. You can do this the old-fashioned way by using paper and pen or by using an app you can download on your smartphone. After you have a better idea of your regular spending, you can easily create a budget.

Cut down on unnecessary expenses. If you normally buy brand-name products at the grocery store, you can switch to the store brand. If you have a lot of bells and whistles on your cable subscription, you might want to downgrade. Or you can even cancel your cable altogether and rely on streaming services for your viewing entertainment.

Contact your creditors and find out if they would be willing to negotiate as you try to pay off the debt. Many are willing to at least eliminate interest rates for the sake of getting paid.