Working out money in a marriage.

pinkshoes

The importance of financial compatibility...

It's logical for the person who is better with money to hold the purse strings. This is me in our relationship, although we are not in debt, so I just manage all the joint account stuff, work out a fair amount for both of us to pay in, and make sure my OH pays of his CC straight away and doesn't go into his overdraft.

If your OH has any sense, he'll see it's a great plan! Does your accounting show a debt free deadline if you stick to the plan?

penaltychargenotice

Thank you Pollycat - you have been very helpful.

What is a LBM?

He will have to cut back on his spending as I will be asking for his credit cards. So you think I should split the amount I've allocated for him with myself?

He does know we are in debt but I don't think he understands how far we are in and what proportion of our income we are using to pay minimum payments each month. I don't know any tricks to make him see I am hoping I can explain what I've discovered and we will work together. I know it will take a long time to get out of debt - probably four to five years.

Yes I have been down shifting in brands. Over the last 6 weeks I have been keeping careful track of all my spending and I am averaging about £120 a week all in as opposed to the £150 I put on my SOA. I am going to continue keeping track of money spent in my notebook as I have found it very helpful. The reduction in spending is partly due to down shifting on brands and also better planning so I go to the shop less often.

In regards to the credit card interest I am a little out of my depth here. At the moment my SOA covers all the minimum payment amounts and there is a £94 underspend each month which I will allocate to credit cards. Will the interest rates be on the statements from the credit cards?

pukkamum - I feel a little like your sister, never knowing what's been spent and when.

floss2

LBM = light bulb moment, when it all becomes scarily clear in one's head.

Take a walk to the DFW board, as they will be very supportive and helpful in trimming your budget where you didn't think there were any trimmings to be made

With things like credit cards, generally the options are to transfer balances to a 0% card if you can and pay as much off before the 0% finishes, or pay minimum payments by direct debit and also throw all your spare cash to the one with the highest interest rate until its clear, then start on the next highest interest rate one until they are all clear.

Also, I agree with giving each of you some spends - even if you don't always spend it but save it for a rainy day, when you DO need something you can't make or find free, you will know you have a few £s in your purse.

And finally, sit down with your hubby & a pot of tea, get out the c/c statements & bank statements and your list of where your cash has been going. It won't be easy, but remember that you're in a partnership, and getting out of the position you have got yourselves into will take cooperation & agreement from both of you.

Pollycat

penaltychargenotice wrote: »

Thank you Pollycat - you have been very helpful.

You're welcome.

What is a LBM?

Light Bulb Moment.

He will have to cut back on his spending as I will be asking for his credit cards. So you think I should split the amount I've allocated for him with myself?

Yes, I do, because it's only fair. It might not be a 50/50 split but I think you should at least be able to treat yourself to a new lippy or glossy magazine every so often.

He does know we are in debt but I don't think he understands how far we are in and what proportion of our income we are using to pay minimum payments each month. I don't know any tricks to make him see I am hoping I can explain what I've discovered and we will work together. I know it will take a long time to get out of debt - probably four to five years.

You're probably a bit short of time if you're going to talk to him tonight but you can at least show him the SOA you've done, plus the credit card bills and show how much the debt is costing you by only paying the minimum.

Yes I have been down shifting in brands. Over the last 6 weeks I have been keeping careful track of all my spending and I am averaging about £120 a week all in as opposed to the £150 I put on my SOA. I am going to continue keeping track of money spent in my notebook as I have found it very helpful. The reduction in spending is partly due to down shifting on brands and also better planning so I go to the shop less often.

I find menu planning is a great way to ensure minimum waste of food.
For example, I'll buy a family size pack of mushrooms and peppers (there's only the 2 of us) and plan to use some in a tuna risotto, some in a pasta dish and so on.
I heard the other day that a family wastes, on average, £60 per month on food. I find that hard to believe but we waste very little.
Old Style board is very good and they're very nice people too.

In regards to the credit card interest I am a little out of my depth here. At the moment my SOA covers all the minimum payment amounts and there is a £94 underspend each month which I will allocate to credit cards. Will the interest rates be on the statements from the credit cards?

Yes, I believe the interest rates should be on the statement.
TBH, we're lucky enough to be able to pay our c/c bills off in full so I don't take much notice, other than when we're switching our balance.
They key is to pay any spare money on the debt that is costing you the most i.e. the one with the highest interest rate. Then move on to the next highest one once that has been cleared.

pukkamum - I feel a little like your sister, never knowing what's been spent and when.

Comments in red.

Good luck.

penaltychargenotice

thank you Floss2 - I am thinking we will go with the paying off the highest interest card first. I really do not want any more credit cards to keep track of! So I will get together all the statements and see which is the highest rate.

I am working on a debt free date.