Should I reconsider marrying big debtor?
I’m getting married, and my partner has hefty student loans and credit card bills. Should I be worried enough to reconsider?
Debt shouldn’t keep you from putting a ring on it, if you take the right precautions.
Most importantly, you need to know the details of what you’re getting into. Financial problems are one of the leading causes of divorce, so avoid potential strain on your relationship by talking candidly about spending attitudes and debt early on. Discussing your financial histories openly can help you both assess whether getting on the same page is possible. Only then can you plan together how to pay down the debt.
Get the facts
Debt incurred before marriage won’t become jointly owned when you say “I do.” But when you’re building your life with someone, their financial history has an impact on your future plans. Also, debt either of you takes on once you’re married is legally both partners’ responsibilities if you live in a community property state — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin. And if you combine your debts by consolidating them into one joint loan, you’re both on the hook for paying them off regardless of where you live.
To kick-start a candid money conversation with your partner, share credit reports . Everyone is entitled to one free credit report annually from each of the three major credit bureaus. The reports show current and past accounts and payment histories. Discuss any patterns, such as frequent late payments, and why they occurred. Were they the result of a short-term and situational issue, or do they demonstrate ingrained behaviors?
You also should share the credit scores based on credit reports. You can get get free access to credit scores through various websites, and they’re often included on monthly bank and credit card statements. In general, a score lower than 630 is considered poor, which can mean higher interest rates or rejection on loans and credit cards. It’s reasonable to ask a partner with poor credit not to take on new debt in the short term, and to try to save at least $500 for emergencies that would otherwise go on a credit card.
Create a plan
Barring any truly scary revelations, start building a plan that puts you on a shared road to financial wellness.
Your partner should aim to get rid of credit card balances first, then pay extra toward student loans. Credit cards often come with higher interest rates, so carrying a balance can cost more money over time.
In the case of a particularly large student loan burden, your partner could consider a federal income-driven repayment plan, which links payments to income.
Kitty Bressington, a certified financial planner in New York, said couples often attack debt by cutting back on dining out, impulse purchases and personal care such as manicures and haircuts. Setting smaller repayment goals along the way while paying off large debts can help prevent discouragement.
“If you can’t talk about money, you’re not going to be able to talk about some of the other, more difficult things that you’re going to encounter as a couple,” Bressington says.
Consumers hoping to find out how many calories are in that burger and fries may have to wait — again.
New government rules to help people find out how many calories are in their restaurant meals are set to go into effect this week after years of delays. But they could be pushed back again if grocery stores, convenience stores and pizza delivery chains get their way.
Originally passed as part of the health care overhaul in 2010, the law requires restaurants and other establishments that sell prepared foods and have 20 or more locations to post the calorie content of food “clearly and conspicuously” on their menus, menu boards and displays. The restaurant industry has backed the law, but the delays have come as the other businesses that never wanted to be included say it is burdensome and have fiercely lobbied against it.
Facing a May 5 compliance deadline set by the Food and Drug Administration last year, those groups are eyeing a massive spending bill that Congress will have to pass this week to keep the government open. They’re hoping to either delay the menu labeling rules again or include legislation in the larger bill that would revise the law and make it easier for some businesses to comply.
At the same time, the FDA is signaling it may act even sooner. In a typical first step before a rule or decision is announced, the agency has sent language to the White House for review that would delay the compliance date.
FDA spokeswoman Deborah Kotz said in a written statement that the agency is “aware of the concerns” about the upcoming deadline and “is taking these concerns seriously as it considers how to best fulfill its public health mission while minimizing regulatory burden.”
A delay would be the latest of many. The FDA took more than four years to write the rules, and establishments originally had until the end of 2015 to comply. That was pushed to 2016 and then to May 2017.
The idea behind the menu labeling law is that people may pass on that bacon double cheeseburger at a chain restaurant, hot dog at a gas station or large popcorn at the movie theater if they know that it has hundreds of calories. But grocery stores and convenience stores have said the rules would be more burdensome for them than they would be for restaurants, which typically have more limited offerings and a central ordering point. The majority of prepared foods in grocery stores — from the salad bar to the hot food bar to cookies in the bakery — would have to be labeled.
The industry groups are backing legislation by Rep. Cathy McMorris Rodgers, R-Wash., that would narrow labeling requirements for supermarkets by allowing stores to use a menu or menu board in a prepared foods area instead of putting labels on individual items. It would also allow restaurants like pizza chains that receive most of their orders remotely to post calories online instead of at the retail location, as the rules now require.
McMorris Rodgers, a member of House leadership, has been pushing for her legislation to be included in the spending bill. But if it’s not included, a delay by the FDA could give Congress the needed time to pass it.
The American Pizza Community, an advocacy group for pizza companies, is also pushing for a revision. They say the FDA rules, which require menu boards in restaurants, don’t make any sense because most of their customers don’t come into the store.
The law “works for fast food and sit-down restaurants, but it does not work for pizza companies,” says Tim McIntyre, a Domino’s executive and head of the pizza group.