Monday, July 14, 2008
This is wedding season, and many are on the cusp of joining their lives together. This includes finances. To assure that things go smoothly once they are married, it makes sense for couples to talk about a financial plan before the big day.
If you're getting married soon, consider these tips from Bill Hardekopf, CEO of Low Cards, a Web site that helps consumers compare credit cards:
Have a talk. The best way to make sure you're both financially on the same page is to talk about your financial goals. If you discover that one is a spender and the other is a saver then create a budget that clearly spells out expectations.- Be honest about debt. There's a good chance that at least one of you will bring some debt into the marriage, in some form -- credit card loans or student loans. One of your first priorities should be to pay down debt. Your debt should be less than 35% of your income. One way to begin is to start by paying off the loan with the highest interest rate. Once you get that out of then way, then move on to the loan with the next highest rate.
If you don't have cash, don't make a lot of big-ticket purchases at once. Each new loan -- including a home mortgage, financing new furniture and car loans -- will go down on your credit report. Too many loan applications at once could lower your credit score and increase the interest rates that you need to pay.- Remember that it is important to build a good credit history for both partners. Make sure to put all loans and accounts in both your names.
Source: http://www.marketwatch.com/news/story/best-ways-newlyweds-start-their/
