Is money the root of all evil? Probably so!

In many households, financial burdens are causing unwanted stress amongst mates. The constant arguing over who bought what, how much those shoes cost, or past due notices on utility bills, for example, are all reasons for individuals to file for divorce or breakup. Unfortunately, we’ve seen many instances where finances are deemed taboo in a relationship.  When it comes to a persons credit history or level of debt, people are secretive for fear that their mate will not approve of their financial status.  Thus, giving their loved one a reason to believe that their not adding value to the relationship.

But, money is just as important as a discussion on religious beliefs. Your financial history and current status is imperative to talk about if you are serious about your union and future together.

So, where does a couple begin when they are experiencing financial stress? Below are a few tips (courtesy of LowCards.com) that could possibly save your relationship and your spending habits.

 

1. Full Disclosure of All Debt and Financial Obligations
Get everything out in the open. Make a list of all student loans, car loans, credit card debt, even loans to friends and parents. Get copies of individual credit reports to share the financial past and any accounts that you may have forgotten.

2. Raise Your Credit Score
Make it a goal for both partners to have a credit score over 720. This will this help you qualify for the best terms and interest rates on loans and save thousands of dollars over your lifetime. In addition, insurers, landlords and employers use credit reports to make decisions about your application. Raise your credit score by paying your bills on time, paying down your debt and limiting your credit applications.

3. Plan for Spending
Both spouses spend money on things they think are necessary, but this is often subjective. Conflict occurs when spending leads to judgment or anger from the other spouse. Together, work out a plan for daily spending and how to save for some of the bigger purchases–and even an occasional splurge. This can help remove the temptation to hide purchases and keep secrets from your spouse about spending.

4. Keep a Credit Card in Your Own Name
Keeping a credit card in your name helps build your individual credit history. If you are worried about your partner’s spending habits, then he or she should not carry a credit card. Add your partner as an authorized user to your account and monitor the monthly statements for any unrecognizable charges.

5. Pay Off Debt
Decreasing debt reduces financial stress. The faster you pay off your loan balance, the sooner you can start saving and building a strong financial foundation. When you receive gift money, a bonus, a second job or a tax refund, use this to pay off debt. Making micropayments can help pay down your debt faster. Eat a meal at home or use coupons, and immediately apply the money you saved to your credit card balance. If you have multiple credit cards with a balance, pay off the balance with the highest interest rate and then move to the next-highest rate.

6. Emergency Fund
All couples should have an emergency fund of six to eight months’ worth of living expenses held in a safe place such as a money-market fund. Simply knowing it’s there can reduce stress, since you know you’re not walking a fine line between comfort and catastrophe. Make savings consistent and untouchable by setting up an automated deposit from your paycheck into your savings account.

7. Monitor Your Accounts
Even if you divide up bill paying and investing duties, both parties should be able to easily access accounts to know what is going on with your money. Websites like Mint.com can keep track of all accounts–investment, checking, college funds and loans. This keeps information clear and in the open for both spouses.

8. Get Help
If arguments prevent you from getting started or making a financial plan, it may be good to seek professional counseling from a financial counselor or credit counselor. The National Foundation for Credit Counseling can help  you find a certified credit counselor in your area. They can help you create  a debt management plan. The set up fee is typically $50 and the monthly  fee is about $25.

9. Talk It Out
Regularly make time to talk about your finances. It is important that both partners actively participate in these discussions. Keep it comfortable and conversational–do not make this a business meeting. It is not a time for blame and accusations. Let it be an open forum where either spouse can bring up problems and issues and even ask for suggestions and help. Let your actions show that you are in this together.

10. Add Extra Income
Selling unwanted items at a garage sale or on eBay is a start, but you may have skills that can make extra income. You can make picnic tables and chairs and sell them on Craigslist, or make bows and girls’ accessories to sell at children’s clothing consignment sales. You can board animals while their owners are on vacation. If you are a former athlete, you can give private lessons to kids learning how to play your sport.