Cupid has a tough match to make this Valentine’s Day. It appears that no one wants to be in a relationship with debt. Most of the respondents in the National Foundation for Credit Counseling (NFFC) monthly poll indicated that they rather possess cautious reservations in regards to taking on debt of their loved ones to the point of ending the relationship. Fifty-four percent of respondents won’t marry until debt was paid (37%), will marry but not pay the debt (10%), or end the relationship (7%). The other 46 percent were willing to marry and pay it off together.
The NFFC January poll question and results are as follows:
A. Not marry until the debt was paid = 37 percent.
B. Marry and pay it off together = 46 percent.
C. Marry, but not help pay the debt = 10 percent.
D. End the relationship = 7 percent.
Considering all negativity coming from debt, some people may not realize that issues can go beyond credit scores or interest rates. “It appears that debt overrides love, at least temporarily, when deciding to move forward in a relationship, its money over marriage,” said Jana Castanon, spokesperson for Apprisen.
Particularly, young adults who emerge from college with thousands of dollars in student loan debt are the ones who have second thoughts about continuing the relationship. If two millennial with similar debt obligations marry they will have a debt load. Nearly all divorces in America are caused by existing debt issues. Mentioning this brings to no surprise that people are more reluctant to start their relationship on the wrong financial foot.
<h2>Debt impacts your credit report</h2> and scores severely to the point where it affects the basic essentials needed when building a life together. It may become difficult to buy or rent a home, obtain a car, insurance, or even a job.
Lovebirds should be aware and know the difference that credit reports and scores are counted for individuals and not rated as a couple. Matrimony brings two people together, but their credit remains separate. Accounts however, can be opened jointly as a co-applicant. People mainly apply jointly when making a large purchase which requires two sources of income to support the loan. Specifically in this case if one person has a low credit rating it may affect the approval or when extending credit the interest rates may be higher. Furthermore, the benefit of having a person with good credit is that it may improve your own. Adding a person to an account as an authorized user permits the reporting to appear in both the primary and the authorized user name. When credit is handled responsibly it will positively impact on both credit reports.
Who said love and money were separated? In a marriage, financial decisions are being made on a daily basis. It is the reason why it is important that couples communicate openly about their finances. Both should be willing to share sources of income, debt obligations, credit reports, and credit scoring information. Discussions are needed to know personal preferences for spending and saving. Financial baggage may be heavy, but settling one’s differences will spend the rest of one’s life in happiness from fairy tale into realty.