5 money issues that could ruin your marriage

5 money issues that could ruin your marriage

A great marriage may be based on rock-solid principles of love and respect, but money has a way of shaking the foundations of even the most secure relationships.

Here are five money issues to watch out for, whether you’re starting a new relationship or if yours is already well-established:

Starting off with a debt

Weddings don’t have to be expensive, but when you’re throwing a big party for two families, plus assorted friends and hangers-on, the cost can quickly add up.

To afford their dream wedding’s hefty price tag, some couples go deeply into debt, maxing out their credit cards or taking out personal loans. This can lead to more money problems further down the line as they struggle to manage the repayments on these debts.

While the wedding of your dreams doesn’t have to be impossible, it’s important to be realistic about the costs involved, and to be open to making compromises where necessary. If you decide that your wedding is worth going into debt for, make sure you’re confident that you can manage the repayments without risking your financial future together.  

Getting joint accounts before you’re ready

A whirlwind romance can be wonderful, but comes with its share of risks. While you may want to share everything with your partner, from your home to your name, it’s often worth taking a moment before combining bank accounts or credit cards.

If the relationship breaks down for any reason, it can be difficult to disentangle your individual finances from your shared accounts, and disputes over who owns what can be hard to resolve fairly. In a worst-case scenario, your spouse could run up a huge debt on a shared credit card, or drain your shared savings account, before leaving you with no savings and a damaged credit rating.

Keeping money secrets

It should be obvious that secrets and lies can lead to relationship problems. And when it comes to money-related secrets, you not only risk  personal problems such as trust issues, but serious financial problems that can affect both of your finances.

Financial secrets in a relationship can include concealing spending, hiding past debts, or maintaining a personal bank account or credit card without a partner’s knowledge. For keeping your finances and your relationship equally strong, honesty should be a priority.

Incompatible money values

There is no “right” way to manage your household finances – it all depends on your individual circumstances. If two partners have two different opinions on what’s best for their shared financial future, it can lead to disagreements, which can lead to problems.

For example, some people firmly believe in the Shakespearean wisdom of “neither a borrower nor a lender be” and are against going into any kind of debt. This principled attitude can be problematic if their partner is a believer in “spend money to make money”, and is in favour of using a manageable level of debt to reach their financial goals, such as taking out a mortgage to buy a home or investment property.  

In cases like these, a degree of compromise may be required, along with plenty of communication. Which leads us to our final money issue that could ruin your marriage:

Not making plans together

While joint finances come with its share of risks, so does keeping your finances completely separated. Unless a couple co-ordinates their efforts, reaching their financial goals, either individually or as a team, could take much more time, effort, or expense.

It may not be fun, but working out a household budget can be a big help when it comes to making money decisions as a couple. As well as counting on one another, couples can find additional support from a qualified financial planner or broker, who can take their individual circumstances into account when offering money advice.

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How long does it take to get a $5000 loan?

Depending on the lender, personal loans and medium-amount loans for $5000 can sometimes be approved in under an hour, and give you access to the money the same day. Other loans may take 24 hours or longer to assess your application, and you may not get the money for a few days.

What is debt consolidation?

Debt consolidation is the process of rolling several old debts into one new debt, usually to save money or for the sake of convenience.

Can I get a fast loan with bad credit?

Some lenders offer fast loans to borrowers with bad credit. Providers of small payday loans of up to $2000 or medium amount loans of up to $5000 may have no credit checks, though these lenders will usually want to confirm you can afford its loans on your income.

What do I need to get a fast loan?

Most lenders will need to you provide the following information in your application for a fast loan:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of any assets you own (e.g. car, home etc.)
  • Details of any liabilities you owe (other personal loans, credit cards, mortgages etc.)
  • How much you want to borrow
  • Over how long you want to pay it back
  • Purpose of your loan

Are there any interest-free emergency loans?

The No Interest Loans Scheme (NILS) allows low-income borrowers to take out no-interest loans for up to $1500 to purchase essential goods and services.

There are also similar low-interest loan schemes available to borrowers in financial hardship who are having a tough time getting finance approved.

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

Can I get a self-employed personal loan with bad credit?

It may be much more difficult for a self-employed borrower to successfully apply for a personal loan if they also have bad credit. Many lenders already consider self-employed borrowers to be riskier than those in full-time employment, so some self-employed personal loans require borrowers to have excellent credit.

If you’re a self-employed borrower with a bad credit history, there may still be personal loan options available to you, such as securing your personal loan against a vehicle of equity in a property, though your interest rates may be higher than those of other borrowers. Consider contacting a lender before applying to discuss your options.

Can you get an emergency loan on Centrelink?

When many lenders assess a borrower’s income to determine whether they can afford a loan’s repayments without ending up in financial stress, they may not count Centrelink payments as income for this purpose.

Before applying for an emergency loan, it may be worth contacting a potential lender to find out if they accept applications from borrowers on Centrelink.

Can I apply for a quick loan online?

While some lenders will require you to provide paperwork in person, many lenders will allow you to make an application for quick personal loan online. You’ll still need to provide information on your identity, income, and loan purpose in most cases.

Can I get a $4000 personal loan if I’m unemployed or on Centrelink?

Before most providers of personal loans or medium amount loans will approve an application, they’ll want to know you can afford the loan’s repayments on your current income without ending up in financial stress. Several lenders don’t count Centrelink benefits when assessing a borrower’s income for this purpose, so these borrowers may find it more difficult to be approved for a loan.

If you’re unemployed, self-employed, or if more than 50% of your income come from Centrelink, consider contacting a potential lender before applying to find out whether they accept borrowers on Centrelink.

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

Are there $2000 emergency loans?

If you’re having trouble being approved for a loan of less than $2000 and urgently need to purchase household essentials, there may be emergency loan options available to you.

For example, the No Interest Loans Scheme (NILS) allows low-income borrowers to take out interest-free loans of up to $1500 for essential goods and services.

For further assistance, consider contacting a financial counsellor, or calling the National Debt Helpline on 1300 007 007

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.