American consumers are carrying around a hefty debt load-just over $11 trillion in mortgages, credit card debts, auto loans, and student loans, to name a few. With that in mind, it's safe to say that most people are probably carrying some form of debt. While this obviously has an effect on your finances, your debt load might be negatively impacting your relationships as well.
Money problems are consistently named one of the top reasons for getting a divorce. With that in mind, it’s no surprise that one survey from American Express found that 61% of couples surveyed said that their household finance discussions often led to arguments. That same survey found that 50% of couples don’t agree with the financial habits of their partner.
While most couples will agree that openness and honesty about finances is crucial in a relationship, nearly 31% of Americans who combine their finances after marriage admit to lying to their spouses about money. Of those surveyed, 20% also said they had a credit card their spouse had no knowledge of.
Money woes and debt don’t just affect married couples. One survey by creditcards.com found that for singles, debt and poor money management skills are a red flag and even a deal-breaker for many. Fifty-seven percent of women and 48% of men surveyed said that having debt is a turn-off in a relationship. For women, 71% agreed that keeping debt a secret is a good enough reason for breaking up, while just 54% of men said the same thing.
How you manage your money now is not the only thing singles are looking at. For 57% of women and 47% of men, a partner’s credit score is a determining factor in their relationship.
Financial experts and couples alike all agree that openness and honesty is key in maintaining financial harmony in your relationships. Things you can do to avoid arguments about money in your relationship include:
When it comes to relationships, money matters. Getting control of your debt and being open and honest with your partner about your finances is the best way to avoid problems down the road.