Talking about consolidating credit card debt is not a usual topic between spouses. According to reports, money causes stress to about 36% of relationships. It is understandable if some couple skirts around the issue of their financial problems.
While this will stop fights between the two of you, it will do nothing to improve your financial situation. It will not ease the stress that you feel about your debts. In fact, ignoring your debts will not really give you a sense of peace. At the back of your mind, you know that the problem lingers and will keep getting worse the longer it takes for you to act on it. After all, credit cards are notorious for high-interest rates. It can quickly cause your balance to grow significantly until it becomes too much for you to pay off.
This is the reason why you need to discuss consolidating credit card debt with your spouse – and you need to do it as soon as possible.
Why talking about consolidating credit card debt is healthy
What are the different reasons why you should start talking to your spouse about credit card consolidation?
It forces you to face your financial issues
First of all, consolidating credit card debt will force you to take a look at your financial issues – most importantly your debt. Consolidating debt means you have to identify what those debts are and you also have to gauge your capabilities to pay it off. You need to figure out if you have the right reasons to choose debt consolidation in reaching debt freedom. You can discuss this between the two of you – since you will most likely be combining your financial resources to get out of debt faster.
It keeps your debt problems from growing
When you tackle your debts together, it is easier to muster the courage and gather the resources that will allow you to act on it immediately. Not only that, it will help you keep a tight lid on your spending to ensure that the balance will not grow further. With the two of you working on it, you do not just increase the chances of keeping the debt from growing. You will also have a higher chance of completing the debt payments.
It helps you feel comfortable talking about money
As you talk about consolidating credit card debt, you will get used to the idea of talking about money. According to a survey, almost 7 out of 10 respondents said that they would rather talk about their weight than discuss their financial position. It is not unusual for this feeling to extend even when you are married. In fact, you may even feel more ashamed of your individual debts because you do not want your spouse to feel disappointed in you. However, you need to discuss both the good and the bad. This is the best way for you to be successful in achieving debt freedom.
It builds trust and respect
Although the topic of consolidating credit card debt is not an ideal conversation between couples, you need to know that it can help build trust and respect. It is not really during the happy times when your relationship will be tested. Most of the time, it is during the hardest times when both trust and respect can be built. Make sure you learn how to work together as you deal with this difficult financial situation.
Reminders when consolidating credit cards
As you and your spouse talk about consolidating credit card debt, there are a few things you need to constantly keep in mind.
You will still pay off the whole balance
Credit card consolidation does not involve debt reduction. You will have to pay the whole balance that you owe. Sometimes, there is an additional fee that you have to pay for the transfer of funds. Does it still make sense to consolidate debt? Yes, as long as you have the right circumstances. You need to have enough income to pay off your debts. You should also have a high credit score so you can get a low-interest rate on the credit account that you will use to consolidate credit card debts. This is how you can save money in debt consolidation.
You have a chance to improve your credit score
Consolidating credit card debt also means you have the chance to make your credit score better. While a good credit score is ideal when using debt consolidation, it is not necessary. So if you started with a bad credit score, that is okay. As long as you stick to your monthly payments, you should be able to increase your score after a few months. If you do this correctly, you will not just lead yourself to debt freedom, you will also improve your credit history.
You can save money with the right repayment period
Finally, consolidating all your debts will also give you the chance to save more money – at least, if you have the right repayment plan. As mentioned, a lower interest rate will help you save money. However, if you shorten the repayment period, that will help you save even more. It will probably cause your monthly payments to rise – but because of the lower interest, most of it will go to the principal balance of your debt.