Monday, 10 August 2015

'Sexually transmitted debt' is a thing



 WHEN you get into a new relationship, there's so much to look forward to and plenty of exciting things to discover about your new partner - but several maxed out credit cards and a high-interest personal loan aren't one of them. You see, your own debts and financial situation aren't just affecting you anymore, they can also place negative implications on your significant other.
Put it this way, if one person has a big credit card debt, it may affect a couple's ability to get a home loan. Or if one party defaults on their credit card payments, the bank may come after a couple's joint assets. People tend to not reveal their personal debts because they feel ashamed, but it is important for couples to have the 'money talk' sooner rather than later. Here's how to be STD smart.


 
Sharing your intimate details

Starting a new relationship can be an exciting time, learning about the other person's favourite colour, if they are a cat or dog person, what they like to eat and so on. But sometimes you need to ask more probing questions, like how many credit cards they have and how much they owe on each card. While you are at it, maybe check whether they have store cards, a car loan, personal loan or even a home loan. Be it good or bad, it's important to know your partner's intimate details.


Developing a strategy


Managing debt is important. Be sure to ask your partner how long they've had the debt and what steps they are taking to pay it off. For example, if they've had credit card debt for many years, they will need to make more than the minimum repayments to pay it off. The general rule of thumb is to pay off bad debt like credit cards first as they usually have the highest interest rates. With multiple credit card debt, it may be worth rolling this in to one low-interest card to save on interest. It may even be worth getting the scissors out to remove any further temptation.


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