Don’t Say “I Do” to Bad Credit

Finding “The One” is hard. Sure, you have the hearts and butterflies to look forward to, but there are also tons of awkward situations and discussions that absolutely need to happen.

It’s essential to talk about certain things before you decide to get married. For example, where will you live? Do you guys want to have kids? If so, about how many? What’s your credit score and financial situation like?

Woah, woah, woah! Hold on there, Tara! Credit score? That’s awfully… personal.

Let’s face it – talking about finances can be very stressful. Here are four tips from the folks over at e-How on the right way to tackle this very important and necessary discussion:

*Honestly talk about your individual credit scores. Remember that there are three credit reporting agencies. These different agencies have different information and give you your credit scores based on that information. It is possible to have three different credit scores, one for each agency. Have copies from each of the credit reporting agencies for both of you. Be sure that you understand what those credit scores mean to you as individuals and as a couple.

*Candidly discuss your credit card debt. Have copies of all your credit card statements and the contracts from each of the issuing credit card companies. Add up all of your credit card debt to see how you each of you owe individually. Add up your individual debt to see how much you owe as a couple. Know and understand all of the interests rates, fees and penalties associated with each credit card. Both of you need to explain how you use your credit cards and how you pay off your credit card debt.

*Frankly talk about all of your other debt. Remember all of your car payments, mortgages and students loans–any debt that you have. Even if you are not required to make payments on those student loans, still talk about the payments that you will eventually have to make. Add it all up so you will know how much you both owe, individually and as a couple.

*Openly address how you plan to pay off all your debt. Formulate a workable plan, to pay off that debt. Consider your incomes, taxes and monthly expenses as you make your plan to get out of debt. Remember to include the amount of money you plan to put into savings as well as all charitable donations you want to make. This is not a time for big plans and even bigger dreams. Your plan to pay off your debt has to be as realistic as possible.

Have you had the “the talk” with your significant other?? Any  big surprises? Were you nervous? Leave a comment with your story!