Jonathan
Couples often find it hard to discuss money matters together. It seems like a taboo in relationships, and sometimes, things can go sour when money starts to play into the game.
But if you’re finally putting your relationship to the next level, whether one of you is moving in or the two of you are getting married, you should spend some time together to discuss about the subjects of money, budgeting and personal finance.
It has to be done because sooner or later, you’ll both be entering into joint savings, checking account and loans, among other things. So you both really have to be honest with yourselves.
You’re lucky if the talk about money isn’t an issue for the two of you even during the dating stage. Otherwise, you’ll have to keep an eye on your partner’s personal finance habits especially when you’ve spent a lifetime building a good credit yourself.
So what are the red flags that your credit record will be meeting its doom?
Zero credit history
Sounds ironic, isn’t it? Your partner may have no debt record but in some countries like the US or the UK, it’s a cause for low credit worthiness. It’s funny how lending companies will only grant you loans or credit card power when you can prove that you don’t need the money.
But kidding aside, your partner’s low credit worthiness can affect the way you take out loans on a joint account.
Compulsive buying and excessive purchasing
Does your partner constantly buy stuff even though he doesn’t need them? It won’t be problem if he has the means to pay those items. But things can go downhill in the long run if he holds a supplementary account to your credit card.
He could be swiping left and right without your knowledge and you could be in for a shock when the bill comes. It gets worse when he spent too much and he doesn’t have the means to pay the debt in full before the due date.
Unhealthy practices on bills payments
Whether you have her as a secondary credit card holder or simply let her use your credit, it can be problematic when she tends to procrastinate with repayments.
Especially with credit card, it can be a deal breaker when she promised to pay the debt in full at the end of the month but decided to pay the minimum pay instead, which means you end up paying the interest charges on the remaining balances.
It’s fine if you can willingly pay the balance, but if you’ve detailed your personal budget, her non-payment in full can ruin your own finance plan.
Poor money management skills
Personal finance literacy is a must-have for every individual. Unfortunately, it isn’t taught in schools and many people have an unhealthy attitude towards money and savings.
Living together with your partner requires one of you to manage the joint finances. If he is assigned as the finance manager and he doesn’t have good money management skills, you’ll end up stressed out trying to fix the situation.
You could also end up depressed at the thought of your hard-earned money pouring down the drain. In a worst case scenario, your household could be drowning in debt as you struggle to make ends meet payday after payday.
Looking for a Personal Loan?
Be it to start a new family business, fund your kid’s education, or even your dream vacation with your special someone, get the personal loan to fuel your dreams through Loansolutions. We are the Philippines’ #1 Online Loans Market, with the largest online network of legitimate lenders and banks. Our expert loan agents will help you get a low-interest personal loan, and assist you with your application all the way to approval.
