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Editorial

Plan finances together to remain connected

  • PublishedApril 16, 2012

Combined credit

The last consideration when it comes to a couple’s newly combined finances is whether or not credit will be applied for jointly or separately. Should either of you want to make larger purchases such as a house, car or appliances; it will be much easier to get a loan if you have joint credit. Also, both parties are responsible for the debt, whereas with separated credit, each individual’s credit and debts are their own, and are not responsible for the other. There is an exception to this rule however, which is applied towards items purchased as family expenses. Establish whether one of you has bad credit before entering into the relationship. If you are for separate financial accounts, discuss a method to pay bills and deal with other financial matters related to both of you jointly. You may opt to open a third joint account that is designated as the house account. Each member of the couple then transfers a set amount of money every month to this account in order to pay bills. Of course, the two of you will need to determine how much needs to be paid every month, and how much each person will contribute.

Ultimate budgeting tip

Forthrightness is what carries the day when it comes to dealing with each other about your financial weaknesses and needs. From the beginning, discuss a plan on how you will handle your finances.

 

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