I was sipping my coffee and reading through CNN when I stumbled upon this article about helping your partner with their debt. Folks, I almost spilled my coffee reading this one. A reader wrote to Douglas Boneparth, a certified financial planner, about his wife’s $20k in credit card debt and $100k+ in student loans. The reader wants to help his wife manage her debt, and I have to say, that’s pretty sweet of him. Boneparth’s response is spot on, though – before doing anything, you need to understand why your partner got into debt in the first place. Was it due to anxiety around money, lack of financial education, or was it simply because their income wasn’t enough to cover living expenses? The answer to this question changes everything about how you help them.
The reader’s situation is not uncommon, and it’s great that he’s taking the initiative to help his wife. Boneparth suggests that the reader and his wife approach the debt itself by first tackling the credit card debt, which is the most urgent. Those interest rates can be brutal, ranging from 20% to 29%. He recommends using the avalanche method, where you pay minimums on everything and then throw every extra dollar at the highest-rate debt. However, he also notes that some people prefer the snowball method, which involves paying off the smallest balance first, as it provides psychological wins that can keep them motivated.
I have to say, I’m impressed by Boneparth’s approach. He’s not just providing a quick fix, but rather encouraging the reader to understand the underlying issues that led to the debt. It’s not just about paying off the debt, but also about addressing the root causes and creating a plan to manage finances effectively. The article also provides some practical tips, such as using the avalanche or snowball method, and making savings happen automatically by setting up direct deposits into a high-yield savings account.
As I continued reading, I came across a section titled “Tip of the week: Pay yourself first.” This is a great reminder that saving money should be a priority, and it’s easier to do when it’s automatic. By setting up direct deposits into a savings account, you can make sure that you’re saving a portion of your paycheck without having to think about it. It’s a simple yet effective way to build up your savings over time.
In conclusion, this article provides some valuable insights and practical tips for helping a partner with debt. It’s not just about paying off the debt, but also about understanding the underlying issues and creating a plan to manage finances effectively. By following Boneparth’s advice and making savings a priority, you can help your partner get back on track and build a more secure financial future. And let’s be real, who doesn’t love the idea of paying themselves first? It’s a great way to prioritize your own financial well-being, and it’s a habit that can pay off in the long run. 🙃
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
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