In Maryland, average credit card debt reached $9,076 in Q2 2024, one of the highest in the country. Debt can be one of the most stressful aspects of a relationship, especially when one partner owes more than the other. When couples don’t address financial imbalances, it can lead to stress, resentment, and stalled financial goals.
But avoiding the topic doesn’t make the debt disappear. It can make things worse. Research from the Journal of Family and Economic Issues found that couples who are aligned in their financial outlook report higher relationship satisfaction, even when they carry debt. The key is open communication and a shared plan. Here’s how to start.
Have honest conversations
Debt is a tough topic, but ignoring it is worse. If one partner has a low credit score or high credit utilization, it can impact major financial goals like buying a home or securing a car loan. Being upfront about your financial situation helps you avoid surprises, so you can work together toward solutions.
How to talk about debt as a couple
Proactive conversation helps both partners know where they stand and what steps to take next. Here’s how to approach it.
- Share your debt and credit scores: Lay out balances, interest rates, and credit scores for full transparency.
- Discuss how debt affects your goals: Will it delay homeownership, travel plans, or other milestones?
- Create a repayment strategy together: Decide to tackle high-interest debt first (avalanche method) or smaller balances for extra motivation (snowball method).
- Schedule regular check-ins: Make finances a routine discussion rather than a one-time conversation.
If you and your partner are navigating debt together, SECU offers our members free financial counseling to help you create a plan that works for both of you.
Create a joint budget focused on debt repayment
Once you’ve had an honest conversation about debt, the next step is creating a budget that prioritizes repayment while maintaining financial balance in your relationship. Whether you combine finances or keep them separate, you need clear goals and a clear plan for tackling debt together.
Budgeting for couples
- Decide on contributions: If incomes differ, consider splitting payments proportionally or having the higher earner contribute more.
- Cut unnecessary spending: Redirect money from non-essentials like dining out or subscriptions to accelerate debt payoff.
- Automate payments: Prevent missed due dates and reduce stress by setting up automatic payments.
- Review progress monthly: Adjust contributions, track milestones, and celebrate wins to stay motivated.
Consider debt refinancing to lower costs
For couples managing student loans, auto loans, or high-interest credit cards, refinancing can be a powerful tool to reduce interest rates, lower monthly payments, and simplify repayment. Refinancing and consolidating debt can free up extra cash for savings and other priorities.
Why refinance with SECU?
- Lower interest rates: Credit unions often provide more competitive rates than commercial banks, helping you reduce total repayment costs.
- Reduced monthly payments: A lower rate or extended term can help couples free up cash for other priorities.
- Debt consolidation: Combine multiple debts into one manageable payment for easier budgeting.
- Member-centered approach: As a nonprofit institution, SECU prioritizes your financial success, not shareholder profits.
Plan for the future together
Paying off debt is important, but building financial stability goes beyond just repayment. Even while tackling debt, couples should focus on saving, preventing new debt, and working toward long-term goals. Without a financial cushion, unexpected expenses can lead to more borrowing, keeping you stuck in a cycle of debt.
Build a financial cushion while paying down debt
- Build an emergency fund: Aim for at least $1,000 initially, then work toward three-to-six months of expenses to avoid relying on credit for unexpected costs.
- Stick to a debt-free mindset: Avoid accumulating new debt by using cash or debit for discretionary purchases.
- Save for big goals: Whether it’s buying a home, starting a family, or investing for retirement, set aside even small amounts to keep making progress.
- Automate savings and payments: Set up automatic transfers to a savings account while keeping up with debt repayment.
Get personalized guidance from SECU
Talking about debt can be uncomfortable, especially for young adults balancing loans, credit cards, and major life goals like buying a home or saving for a wedding. When one partner owes significantly more, it can feel like an impossible conversation. Who should contribute what? How do you plan for the future while still paying off the past?
Money should be a tool to build your future, not a source of stress in your relationship. SECU’s financial advisors can help you:
- Create a debt repayment plan that looks holistically across your combined finances.
- Find ways to pay down debt repayment while saving for your biggest financial goals.
- Explore refinancing options to lower interest rates and simplify payments.
- Strengthen financial teamwork so both partners feel involved and empowered.
Schedule a free 30-minute financial wellness check today and start making financial decisions with confidence.
