Post # 1
Hi Bees, I have a question for those of you who live off of one income with separate debt. how do you do it? DH and I are preparing financially for our bundle of joy due in January I would like to start practicing living off of one income. We have separate debts…car loans and student loans. We have a joint account and separate accounts. when you live off of one income do you include you debts as well?
Post # 3
DH and I keep our accounts separate and we each pay our own debts, but I am 25 weeks pregnant and plan on taking 12 weeks maternity, and when I go back to work, we will have childcare expenses that will eat up a lot of the budget.
So we decided that once our little one arrives, we will be working off one system. Combine all of our income (or just his for the 12 weeks of maternity) and use it to pay all of the bills/debt.
If weren’t having a baby, we probably would have kept everything separate forever. But this arrival is going to suck up a lot of income, so it’s only fair that we now act as one financial unit instead of two.
Post # 4
I’m confused how you could live off one income and not work on paying the debt down together with the one income?
Post # 5
@June232012: If you’re just practicing and one of the debts will be paid before you’re actually down to a single income, then I don’t see the need. While you’re practicing you might even be able to pay the debts down a little faster with the second income.
If the debt won’t be paid off, then yes, you should include the payments in your practice run.
Post # 6
If it is one income, all money is joint and debts should be paid off in order of highest interest rate to lowest.