Drug testing

Getting Married? What Are The Finance and Credit Implications?

There is a big difference between looking after your own finances while living alone, or with parents, and living with a partner. The transition can be very difficult, especially if both partners are strongly independent, or one partner is financially weak and the other strong. In fact, it is an area of a new relationship that has many pitfalls if you do not set the ground rules from the start.

It is best to sit down together and quietly plan your finances, even before you get married or move in together. Then, when you do so, it is important to be open with each other, and discuss what may go wrong with the domestic finances if you do not plan correctly. That way, you can work on a plan together, and a budget, and set ground rules for a smooth financial future together. It is sensible to bring the use of credit into that discussion, as there will come a time, maybe from day one, when credit cards and other forms of credit become an issue. Agreement on all relevant credit and finance issues will reduce the risk of problems, arguments and misunderstandings later on.

An early decision to make is whether to keep finances separate or not; deciding, for example, whether to have joint bank accounts or joint credit cards.

The Benefits of Joint Accounts

The advantages of consolidating funds into one current account include:

1. Easier record keeping.

2. Should you apply for a loan at any time, there will be less paperwork.

3. Working closely together on the running of the account may help to solidify the relationship and build trust. It gives an opportunity for both of you to bring out your best co-operative nature.

There is one drawback, though. With two people actively using the account, it is not so easy for you to keep track of the account transactions and balances, especially if you are both using the account a lot. This can be overcome by discussing openly all expenditure the day it happens.

The Benefits of Separate Accounts

Keeping separate accounts will allow each person in the relationship more freedom: each will not need to check with their partner over every purchase. In addition, having separate accounts may create fewer complications in the relationship. It will allow them to maintain a sense of independence, and this can be very important to some relationships.

One negative to a joint finance arrangement is that it can seem unfair. If one partner earns ?40,000 per year, and the other only ?25,000, the person with the lower salary may feel there is a lack of trust!

If you do decide to have joint bank accounts checking or savings accounts, then you will need to find a system for paying household bills and handling other joint finances together. One option that works well, and that I use, is to have one joint bank account into which you both pay each month for the house expenses. This can work very well, especially if you sit down together and agree the budget first, and what proportion will be funded by each partner. It is important to get this all clear from the start, then there is likely to be less risk of a problem with financial arguments later on.

Joint Credit Arrangements

Something else to consider with joint finances is credit. This can be considered beneficial, or problematical, depending on your individual credit ratings. At some stage, though, you may both want to apply for joint credit. This is most likely with a big purchase, such as a car or a house. It is best to do that if you have joint credit. With joint credit, you will both be 100% responsible for the debt, even if you co-sign a loan with your partner, or add your name to your partner's credit card account. If, on the other hand, you decide to maintain separate credit, the general rule is that you are not responsible for each other's debt. An exception to this may be if the debt is considered a family expense.

Should one person have had a bad credit record before marriage, then it is advisable for the other to keep their credit separate. A joint credit application will be considered based on the two crdit scores, and the lower one will drag down the other.

This finance and credit article was written by Roy Thomsitt, owner and author of the Eliminate Credit Card Debt Now website.

limousine chicago service
In The News:

Dealing With A Collection Agency

Step I - Selecting A Collection AgencySelecting a credit collection... Read More

Student Credit Cards 101

Almost all students have and use student credit cards. Some... Read More

What Is the Fair Credit Reporting Act and What You Should Know About It

The Fair Credit Reporting Act (FCRA) and the recent update... Read More

Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth

You got creditors calling you everyday. You could lose the... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

Figuring Out the Ever Nebulous Numbers Called Credit Scores

Credit Score FactorsThe information contained on our credit reports affect... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

Dont Dig Your Own Pit

If you want to enjoy your life out of spending,... Read More

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Fact: Over 150 million Americans have credit report with the... Read More

Good Credit Is Not A Good Reason To Borrow More Money After Youve Achieved Financial Freedom

The most important thing for you to remember is that... Read More

Harassment of People in Debt by Creditors

HarassmentHarassment of people in debt by creditors or their agents... Read More

Automobile Credit Report

When applying for a loan to purchase a car, the... Read More

Some Truth About Credit

Credit is currently and has been historically an integral component... Read More

Borrowing on a Credit Card

One of the easiest ways to borrow money of a... Read More

Ten Steps To Building A Good Credit History

Are you thinking of buying a house? Do you want... Read More

Identity Theft ? How Can You Prevent It Happening to You?

The nightmare of identity theft strikes an estimated 750,000 people... Read More

Understanding the Function of Credit

What is Credit?Credit is the backbone and the engine behind... Read More

Maximizing Credit Card Rewards

We spend money every single day on many different types... Read More

How Do I Establish A Good Line of Credit?

A line of credit, roughly defined, is the amount of... Read More

Credit Score - Reporting Your Financial Health

Credit score is one of the most basic, determining factor... Read More

How Healthy Is Your Credit

There's only one way to discover the "health" of your... Read More

Bailiffs & Council Tax - Knowing What To Do

This article is about bailiffs who may call trying to... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

Balance Transfers Introduction

Credit card balance transfer involves using a credit... Read More

us led manufacturer induction street light supplier Pete's produce ..