Before You Pop the Question This Valentine's Day, Ask an Important Question: How Much Debt Do You Have?

Business Editors

ROCKVILLE, Md.--(BUSINESS WIRE)--Feb. 8, 2002

Dealing with money issues may not be romantic, but it's an important part of any lasting relationship.

Those people contemplating a union of checkbooks this Valentine's Day should also "talk to your honey about money," says Joanne Kerstetter, president of Consumer Credit Counseling Service of Greater Washington. "One of the primary reasons marriages fail is over money issues," says Kerstetter. "And divorce is one of the biggest reasons we see people struggling with debt, especially women."

"At CCCS we recommend a 'tell-all' policy when it comes to your financial situation, especially for people dealing with debt and overdue bills," Kerstetter says. If you've been hit by Cupid's arrow, CCCS recommends you consider the following:

--How much debt does she/he have?

If you or your partner is having trouble paying off credit cards, you should work out a plan to get out of debt. After you look at your debt together, discuss how both of you want to approach budgeting, saving, and spending.

--Is he a saver or a spender?

Observe your partner's spending habits in a variety of situations. Humans are creatures of habit and it doesn't take too long for two spenders to find themselves in over their heads in debt.

--Do you have similar lifestyles?

If your honey has an appetite for caviar and all you can afford is a pizza with anchovies, you need to talk about who'll pick up the tab. Eating out can eat up your disposable income.

--Who'll balance the checkbook?

Just as you would talk with your spouse about dividing up housework and errands, you should talk about dividing up the duties of handling your money. Setting a time to meet together once a month to talk honestly about money matters is a method used by many couples.

--What's "mine, yours, and ours?"

Some married couples divide their money into "mine, yours, and ours" accounts. The "Our" account is for common, shared expenses, such as rent, utilities, childcare, and food. The "My" account and the "Your" account are used for personal expenses, such as clothing, hobbies, and gifts.

The amount of money each partner contributes into the "Our" account should be based on their income. If you make 25 percent more than your spouse, then you should contribute 25 percent more to the "Our" account than he or she does. The income left over after both partners pay their share to the "Our" fund, goes into the "My" and "Your" accounts. These accounts are nice because they allow both individuals to spend or save money as they wish, giving them both a degree of financial independence.

--Ask for help.

For down-to-earth budgeting advice or help paying off debt, you can call CCCS at 1-800-328-0878 to make a free, confidential appointment with a financial counselor.

Joanne Kerstetter is president of Consumer Credit Counseling Service of Greater Washington, a free, professional, non-profit community service organization dedicated to helping individuals and families in the Greater Washington area resolve financial problems for more than 25 years. CCCS promotes the wise use of credit intervention and community education. CCCS has offices located in Washington, D.C., Maryland, Northern Virginia and West Virginia. For more information call [phone].