Couples and Credit Cards
Disagreements over the use of credit cards has led more than one couple down the path to divorce. One reason for that is a failure to communicate and come to an agreement about their use before trouble can begin.
Each of us has a difference tolerance for debt, so that’s the place to start. Look at your income, your other monetary obligations, and the amount of money you have left over each month. Then decide how much you can allow for payments on credit card debt.
Once you know the numbers you’re dealing with, you can try to come to an agreement about how much credit card debt is acceptable, and how much would be too much. Keep in mind the other ways you each like to spend money, and remember that paying the minimum balance on a credit card each month will keep you in debt for a long, long time.
Now decide when and how your cards will be used. For some, paying for gasoline and other miscellaneous expenses is a good bookkeeping move, while for others it means spending a little too much each month – and a gradual increase of debt when there isn’t enough money left at the end of the month to pay the balance.
Maybe it’s better to use the card only for major expenses or just keep it on hand for emergencies. You need to decide together.
Rewards points can become another point of disagreement, so if you have a rewards credit card discuss how you’ll “cash in” well ahead of time. One of you may be dreaming of using those points to get some cool new toy, while the other has been looking forward to turning them into cash to pay down your balance.
Someone needs to be the bookkeeper. Too often, both parties think the other one will keep track of the bills and make the payments on time, so neither one does. Then each blames the other for those late payment charges on the next statement.
Whoever is the most organized should be responsible for this task. However, both of you should review the bills and be aware of how you are jointly spending your money.
Couples should be open with each other about spending, because one partner’s excess debt will have a negative effect on the marriage. However, they should still have individual credit card accounts and individual credit worthiness.
No one wants to contemplate death or divorce, but they do happen, and the partner left behind still needs good credit. That doesn’t mean that the “bookkeeper” can’t be responsible for making sure the payment is made on time on all accounts.
