discuss each other’s credit history, no matter how embarrassing. “Many couples get married and have no idea how much the other person owes,” Duguay says. Couples should pick one day each month to do the bills together and add any new financial goals then.
Create a plan. The couple’s main goal is to get out of debt. Tischelle owes $15,000 in college loans and $4,000 in credit card debt. Idris owes $10,000 on a car loan and $2,000 in credit card debt. “They’re in the danger zone,” Duguay warns. The couple should choose two credit cards to keep and close all other accounts to avoid accumulating more debt. Credit cards with the highest interest rates should be paid first. Duguay suggest using her 20% debt rule, where the amount of debt incurred never exceeds more than 20% of the net income.
Helm says Tischelle and Idris should add to their cash reserve while paying off the debt. “They should keep some money for emergencies,” says Helm, who suggests that couples should keep at least three to six months of living expenses in cash. She also advises couples to update their insurance needs and establish a will.