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Avoiding Newlywed Nightmares

Credit Card Debt

The excitement and stress of planning a wedding often leaves very little time for anything else. However, in between wedding and honeymoon planning, it is important to arrange a meeting with your soon-to-be spouse regarding your finances – including your credit card debt.

Although finances and credit card debt are not exactly the most romantic or pleasant topic to discuss before the wedding, it is nevertheless important. If you and your fiancé don’t develop a game plan for handling finances and credit card debt then you may find yourselves in the middle of a newlywed financial nightmare.

Start your marriage out on the right foot by asking each other the following questions:

• How many credit cards do you have and what are their balances? If you both have three credit cards, then you may want to consider paring them down so that you both have one or two joint accounts.  Another issue to discuss is the balances on your credit cards. It is best to lay it all out on the table and so that you and your fiancé can move forward and develop a game plan to pay down the debt.
• Do you want to have joint credit card accounts, or would you prefer to have a separate account? Your soon-to-be-spouse may desire a joint account with you, as well as a separate account, particularly if he/she uses credit cards for business purposes.
• What do you use your credit cards for? Does your fiancé use his/her credit card for emergency purposes only, or does he/she use them on a daily basis to collect reward points? You will both need to come to an agreement regarding what is acceptable once you are married so that arguments do not erupt over credit card debt.
• Who will handle the finances, including the credit card bills? Many couples appoint one person to handle the finances as to prevent confusion and hassle. Talk frankly and openly about this issue and decide which person would be best suited to handle the position of “account manager.”

Credit Card Woes: When Making the Minimum Payment Becomes Difficult

Credit Card Debt Credit Score

It comes as no surprise that millions of credit card holders are struggling to make ends meet. From mountains of debt to increasing credit card fees and interest rates, many consumers have found themselves in the unfortunate position of not being able to pay the minimum payments on their credit cards.

You’ve always paid your bills in the past; you managed your credit card debt; and you were always able to make the minimum payments – if not more –on your credit cards. Your job hours have been cut, your variable interest rate on your mortgage just changed, and you’re struggling to pay your everyday bills, let alone your credit cards. What do you do?

First and foremost, you can not afford to avoid paying your credit card bills. Although it is important to first pay your secured credit, such as your car payments and home loans, not paying your credit card bill should be your absolute last option.

The bottom line is that your credit score, if it is strong, can continue to provide you with options, while a poor credit score can close off doors and leave you with few options regarding your ability to obtain any type of credit. It is therefore of the utmost importance to do everything in your power to continue to pay your credit card bills each and every month.

Your Options

That is not to say, however, that you don’t have options regarding your credit card’s minimum payment. Your first order of business is to contact your credit card company and explain your financial hardships to them.

Given the current state of the economy, many credit card companies are willing to negotiate lower monthly payments. If you have been a good customer with a good credit history then it is likely that your credit card company will work with you. In addition, many credit card companies have financial hardship programs for which you may be eligible.

The absolute worst thing you can do is to either not make the minimum monthly payment or not make the payment at all. You cannot afford to pay outrageous late fees and you certainly cannot afford to destroy your credit.

Finally, you may want to seek the services of an accredited consumer counseling service in your area. A reputable credit counselor may be able to help you (a) lower your monthly payments; (b) lower your interest rate; and (c) pay off your debt.