TROUBLED ECONOMY LEADS TO MORE DEBT . . . Which In Turn Leads to Marital Strife!
TOO MUCH DEBT - THE LEADING CAUSE OF FAMILY STRIFE EARLY IN MARRIAGE - COULD SCUTTLE THE RELATIONSHIP!
Let's face it, folks - debt creates high levels of stress. Early in marriage - and, perhaps, years later as well, too high a debt burden can create marital discord, undermine a relationship, destroy a marriage.
According to Wall Street Journal Reporter Jeff D. Opdyke, in his book, "Financially Ever After: The Couples Guide to Managing Money," increasing debt levels among married couples is of particular concern these days, in the face of one of the worst U.S. Economies since the 1930's. When the economy goes bad, and debt accrued simply to survive, many couples are quick to contemplate divorce, according to the Institute of Divorce Financial Analysts.
Most couples incur some debt. But how debt is looked at by each partner, as well as a payoff plan, directly impacts the likelihood that it will negatively affect a marital relationship.
Opdyke points to Three Questions couples should answer to improve their chances that taking on added debt during troubling economic times will not cause stress in the relationship -
What is the couple's "Debt Philosophy?" In other words, what is their Financial Core Value Statement for taking on and managing debt. Does the couple agree to swear to live within its means, and never over-extend or use emergency savings for non-emergency items? How liberally will credit cards and lines of credit be used?
How will the couple use debt? Some key issues here: how will debt accumulated by one of the partners before the marriage be paid off? How will credit cards be relied on? How will the balance of debt-to-savings payments be balanced?
What is the couple's balance of "Good" Debt vs. "Bad" Debt? Rarely, today, is debt completely eliminated. Rather, it need to be managed - effectively.
Opdyke differentiates between "Good" Debt, which can enhance a borrower's life - a mortgage on an affordable home, an auto loan on a modest car, a student loan, and "Bad" Debt - home equity lines, some auto leases, and credit card advances for discretionary items the family cannot truly afford.
The use of too much "Bad" Debt can be destructive to a relationship - the short-term "high" of feeling better because of a material item gotten with borrowed money - a luxury car, or a boat, for instance - will soon lead to the hangover of the monthly debt to pay it off.
As Opdyke continues to point out in his book, added debt creates increased tension in a marriage, as discretionary money must be paid to one creditor or another rather than spending that discretionary cash as the couple truly desires.
See the Wall Street Journal Summary article for more info.
DEAN MOSS & DEAN'S TEAM CHICAGO
