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Should you pay off debt before marriage?

·3 min read

Marrying your partner is an exciting start to a new chapter in your relationship. But as the next part of your story unfolds, the pages that came before (both good and bad), aren’t necessarily erased.

Prioritizing certain aspects of your pre-marital life — like closing the book on debt — before the big day can help set up your future for smoother sailing.

Read more: Learn how Ally Bank’s Buckets and Boosters can help you pay off debt

Why consider paying off debt before marriage?

Debt is often stressful and can place a significant strain on people’s lives. Bringing a large amount of debt into a marriage, without an agreed-upon plan on how to tackle it, can set you and your spouse up on unstable financial ground from the moment you say “I do.”

Debt can make it tougher to set financial goals for important life moments, like buying a home, growing your family or prioritizing retirement until your debt is paid off. Not to mention that the financial burden can lead to resentment, frustration and disagreements down the line.

Another reason to get a handle on debt before the big day? Weddings can be expensive. Depending on the type of wedding you want to have, debt could make it more difficult to pay for — or worse, your big day could end up adding more to what you or your soon-to-be spouse already owe.

Discussing debt with your partner

Having a discussion (during which you talk about savings, debt, potential prenups and more) is a smart and healthy way to get on the same page financially so you can start your life together as openly as possible.

Remember that not all debt is created equal. Some types of debt, like a mortgage, are seen as “good” since they have the potential to lead to positive returns in the future. On the other hand, debt from credit cards or high-interest loans is often categorized as “ bad debt.”

Strategies to pay off debt before tying the knot

Once you’re on the same page with your partner, it’s time to determine your debt repayment plan, which should include setting repayment goals and creating a realistic timeline.

Create a debt repayment plan

How you get rid of debt looks different for every couple, but having an understanding of various options and strategies to reduce debt will give you more flexibility to find what works best for you. The snowball and avalanche methods are two popular strategies that can be used to help you prioritize debt repayments, especially when it comes from more than one source.

Consolidate your debts

If you have several high-interest loans or multiple credit cards with outstanding balances, this could be a helpful option to explore. With debt consolidation, all of your debts are combined into one loan (hopefully with a lower interest rate) and you make one payment each month.

Build a budget together

If you haven’t thought about creating a couples budget, now is the time to do it. By revamping your budget with a debt repayment goal and timeline in mind, you can get serious about saving and make some short-term changes that’ll help you make progress. For example, if you want to have all your credit cards paid off in six months, you and your partner might choose to completely stop spending money on dining out and delivery for a couple months. Or you might pause all your streaming subscriptions.

Say “I don’t” to debt

Don’t let debt become the big, bad wolf in your storybook romance. As you and your partner plan for your nuptials and beyond, make sure you discuss any debt from before your marriage and, if it makes sense for your situation, put a plan in place to pay it back before the big day. When it’s time to ride off into the sunset, you’ll feel secure and ready to save for whatever comes next — together.

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