For young couples, money woes take a heavy toll

Personal Finance


With money at the root of a lot of relationship stress, it’s no surprise that a partner with credit issues can cause a significant strain and even a split.

More than one-third of borrowers said college loans and other money woes contributed to their divorce, according to a recent report from Student Loan Hero, a website for managing education debt.

However, these days, significant debt is harder to avoid, particularly among those just starting out. A typical millennial living in the city carries a hefty burden — about $23,064, according to LendingTree’s latest study — mostly due to record-breaking student loan balances, sky-high rents and car loans.

If you are looking for love, that kind of financial strain does not bode well. More than three out of four Americans in a committed relationship, or 78 percent, prefer a partner who is good with money over one who is physically attractive, according to a survey by Wakefield Research for Citigroup.

Even among the rich and famous, debt takes a toll. “It’s all relative,” said Stacy Phillips, a partner and certified family-law specialist at the firm Blank Rome in Los Angeles. Phillips has represented a variety of high-net-worth clients, including celebrities like Britney Spears.

“There’s a tendency, especially in America, to live beyond your means,” Phillips said.

But one partner’s bad credit could impact other aspects of your life as a couple when you apply for credit jointly. That includes what mortgage rate you qualify for together and whether you qualify at all.



Source link

Products You May Like

Articles You May Like

Apple suppliers cut forecasts amid rumors Apple is scaling back iPhone 
Cisco CEO ‘optimistic’ about resolution on US-China trade
The analysts got it right and the CEOs got it wrong
10 states where Medicare Advantage will be the cheapest in 2019
David Tepper’s Appaloosa discloses new position in Apple

Leave a Reply

Your email address will not be published. Required fields are marked *