Too much debt?
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Too much debt?
| Wed, 06-25-2008 - 12:55pm |
My fiance and I will marry next May, and just this month, we've decided to merge our finances and start to work out way out of CC debt. In total, we have a whopping $46k in CC debt (not including car and student loan payments). I'm taking over our finances in an effort to get out of the hole once and for all. The good news is that combined our salaries are right over $100k, and I own a townhouse we currently live in, which has built up around $40k in equity over the past 3 years. So when we go to sell the house next year and buy something bigger, we'll have the $$ to actually buy something we want, with enough equity left over to pay off the last CC after a year of the plan. My plan includes:
$2k to debt

I think you've outlined a great starting plan.
All my best,
Danni
Thanks for your encouragement. My fiance is on board for it. He really has no choice, his paychecks are being deposited into my account now and I pay all the bills. I will take your advice and possibly save a little extra each month so we can splurge on something after, say, 6 months of the plan.
I also have plans for saving extra (the 2 paychecks that come from a 3-paycheck month will go straight to a savings account for our honeymoon and other splurges). I'm energized about paying this off so we can start our new life as husband and wife debt free (or almost there at least).
I do
There is no way in this world that I would "merge our finances" before I was actually married, ring on the finger. Please think about it some more. Watch Judge Judy and People's Court -- a few episodes of each and you might change your mind. Take it from someone who has "been there, done that"!!
Peace,
Mary Jo
Depends on the couple, though, right? DH and I did, and it worked out just fine. We did it as part of our process of making decisions together, after our Engaged Encounter weekend, during which we also made decisions about career and family, and learned *how* to make decisions together. That was 19 years ago, and we're still a team!
Kelly
Hi, Mary Jo.
I agree with Kelly that it depends on the couple, but I agree with you that I personally wouldn't do that.
No one knows your situation better than you do, and I sure hope I didn't come across as judgmental.