Newly Weds Can Prevent Debt by Planning Early

When a couple gets married it is not uncommon to spend months or even years planning for the future. Unfortunately, this planning often times does not include the subject of finances. As a result, many newlyweds find themselves unprepared when faced with new financial decisions. The results can be devastating. Some couples quickly amass large amounts of debt while others initiate patterns of spending behavior that is bound to cause problems down the road. The earlier that financial issues are addressed the less likely major problems will arise.

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• Don't wait until you are married. Engagement is the perfect time to begin making financial decisions. Advanced planning gives couples the ability to institute a plan immediately following the wedding.
• Compromise. Having two individuals that are out of sync financially is a sure recipe for disaster. Work towards agreements in such areas as: retirement goals, vacations, cars, houses, and savings.
• Create a budget. Nothing prevents debt more effectively than taking an honest look at your available income and then creating a budget to live within your means. Agree to hold each other accountable for spending behavior.
• Don't overspend on housing. This is a very common financial mistake for newlyweds. Stay within the amount that your budget allocates for housing. For those who are interested in purchasing a house, this may often be less than your pre-approved mortgage amount. Overspending on housing can leave a deficit of funds to handle other expenses. This will often result in heavy credit use and excessive debt.
• Think about retirement. The tendency is to overlook this area since it is decades down the road. However, the sooner a couple begins to save the more powerful are the affects of compound interest.

It is much easier to establish good patterns of financial behavior when you are starting from scratch before bad habits (and their consequences) have been developed. For this reason, the engagement period is a wonderful time for couples to begin making decision about their financial futures. This preparatory work can make their initial years of marriage go much more smoothly by allowing them to bypass financial disagreements and excessive debts.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.