Too much debt?

iVillage Member
Registered: 02-16-2004
Too much debt?
9
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

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
In reply to: unccutie
Wed, 06-25-2008 - 1:31pm

I think you've outlined a great starting plan.

All my best,
Danni

iVillage Member
Registered: 02-16-2004
In reply to: unccutie
Wed, 06-25-2008 - 1:41pm

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).


iVillage Member
Registered: 11-17-2007
In reply to: unccutie
Wed, 06-25-2008 - 3:09pm

I do

iVillage Member
Registered: 02-01-2008
In reply to: unccutie
Wed, 06-25-2008 - 4:37pm

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


Avatar for mahopac
iVillage Member
Registered: 07-24-1997
In reply to: unccutie
Thu, 06-26-2008 - 3:13pm

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

iVillage Member
Registered: 04-12-2007
In reply to: unccutie
Thu, 06-26-2008 - 5:54pm

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.

iVillage Member
Registered: 02-16-2004
In reply to: unccutie
Thu, 06-26-2008 - 6:23pm
We've actually lived together for the last 2 years, so it's not like we're doing this all at the same time. We've been together for a while, have shared the bills for the last 2 years, now we're just commingling money to pay down all of our debt. We have no assets that are joint (he gives me his paycheck each time he gets paid and I deposit into my account). And I give each of us the same amount of allowance each pay period, regardless of the fact that I make $20k more than he does. I also have more of the debt, so it all works out. We'll just go into buying a house once we're married debt free, which is important to me. We wouldn't be able to do that if we kept paying separately, because I was still paying more than he was (the townhouse is mine). Thanks for the cautionary tale, but there are no assets yet that will be joint, so there is no reason not to.
iVillage Member
Registered: 04-12-2007
In reply to: unccutie
Thu, 06-26-2008 - 9:28pm

No one knows your situation better than you do, and I sure hope I didn't come across as judgmental.

iVillage Member
Registered: 07-12-2008
In reply to: unccutie
Sat, 07-12-2008 - 2:34am
It's a good start, but buying a house will be difficult if you don't get the debt down.
 

Steve