Avoiding "Irreconcilable Differences" Over Money
By Cindy Snyder ~ http://www.creativemortgageco.com

Did you know that the "M" word (Money) is cited as one of the major reasons for divorce?  That's probably where the term "Irreconcilable Differences" originated. Couples have been fighting about money forever. If you go into marriage or co-habitation with your eyes open, you will have a more successful relationship in the long run.

It's better to find out now if your soon to be spouse is a spendthrift. Many a blessed union has been spoiled by excessive spending and bad credit. You know all those flowers and candy and nights out for dinner and dancing? Can he afford it or is it draining his finances?  Does he have any savings? What about an IRA or 401K? What about you? Have you made plans for the future? Discuss your goals and plans with your mate. His goal might be a speedboat or a Harley Davidson, while you have your heart set on the house with the picket fence!

Does she go on shopping binges? Can she afford those $150.00 shoes? Does she has 5 or 6 Gold Credit Cards. Are they all maxed out? Have either of you claimed bankruptcy or are slow to pay your debts? Have there been prior marriages? If so, then is one of you required to pay alimony or child support? For how long? Did the ex run up bills and then skip out? If so, your significant other may be responsible.

You should also decide ahead of time how you, as a couple, are going to handle your finances. Are you both going to deposit all your money into one account and then pay the bills, etc and then whatever is left over, you jointly spend? Or are you going to have separate accounts and each contribute equally? Or is it going to be a percentage based on how much each makes? Who is going to be responsible for budgeting and bill paying every month?  What about savings? How are you going to handle that? Will you both contribute equal amounts to save for short and long term goals?

How do you feel about credit? What do you consider too much? At what point do you say, "Stop!"? How does he feel about that? What is his comfort level when it comes to debt? Credit can be a wonderful thing, used carefully. It can also be an albatross. The credit card companies, especially, make it so easy to overspend. Cards arrive in the mail with $5000 credit limits. You get invitations to get this card and that card and the interest rate is only 2.9 percent!! Great deal, right? Read the fine print. The 2.9 percent interest rate is only for the next 3 or 6 months and then the rate goes to 12 or 14 percent. If you are ever late paying your bill, it can jump up even higher! Be careful. So many young (and old) couples get into debt over their heads and end up with bad credit, or worse, end up having to claim bankruptcy. Don't let this happen to you.

Obtain copies of your credit reports. Go over the reports with a fine tooth comb. If there are any discrepancies, write the agencies and explain what the problem is and ask them to remove that item from your file or correct it. Trade reports with your significant other. Sit down and go over each other's reports. Make sure you each understand what you are getting into.  
A couple with full knowledge of each others spending habits and obligations will have a much better chance of avoiding "Irreconcilable Differences".

 Cindy Snyder is the owner of Creative Mortgage Company in Memphis, TN. Please visit her site at http://www.creativemortgageco.com/ She also publishes a bi-monthly newsletter entitled 0nly4Homebuyers If you would like to subscribe to 0nly4Homebuyers go here ~ http://www.onelist.com/subscribe/0nly4Homebuyers/

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