(Closed) The big “D” (debt)

posted 10 years ago in Money
Post # 62
Member
5667 posts
Bee Keeper

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@lefeymw: Even in community states the debt that each party brings into a marriage is still only theirs. It’s only joint debt if it’s incurred during the marriage, so in
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rosworms‘s example, she is not responsible for any of those $40k in prior student loans that her Fiance is bringing to the relationship.

Post # 63
Member
4822 posts
Honey bee

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@Aure: Ahh good point. I was no longer thinking about her example, just in general

Post # 64
Member
915 posts
Busy bee
  • Wedding: October 2011

My Fiance and I are about $50K in debt now. but most of it is mine from student loans, personal loans, and a credit card. However, my Fiance also has student loans that are about $17K of it. We are really going to have to buckle down to pay down our debt too. We don’t even own a house and a car yet and I’m worried about having good enough credit to get those. Our goal is to be out of debt in the next 5-10 years. I think we’ll need to focus on getting better paying jobs.

Post # 65
Member
453 posts
Helper bee
  • Wedding: September 2011

I have about 6K in debt and he is bringing in about 7 with credit cards and school loans. I’m pretty sure we can get rid of it in a year. After the wedding, its time to buckle down.

Post # 66
Member
2441 posts
Buzzing bee
  • Wedding: April 2011

I graduated from college years ago, debt free.  I married the wrong guy (1st husband) and thanks to him I spent years paying off an incredible amount of debt before and especially after the divorce.  Thanks to him my credit is completely shot but I have lived without credit cards for the past 6 years and have paid off my car.  For the first time since I first graduated from college (23 years) I am completely debt free (except for the mortgage).  

Now I am married to Mr. Frugal AKA Pay Cash or Don’t Buy It and… Do you really need it anyway?  Our current mission is to pay cash for a fixer upper so we can sell the house we are in and live mortgage free.  I don’t think I’ll ever be in debt again!  : )

Post # 67
Member
3620 posts
Sugar bee
  • Wedding: September 2010

Cars: About $3,000 on my car, we own DH’s car straight out.

Student Loans: $33,000 for me, around $18,000 for him.

Credit Card: $2,325 between the two of us – we only have one card for both of us.

Mortgage: $176,605 on our home… we’ll have been there two years in July.

Post # 68
Member
13094 posts
Honey Beekeeper
  • Wedding: July 2010

The only debt DH and I have is one car loan.  The only debt we will ever have is a mortgage and car loans.

Although we use credit cards for almost everything we buy, we refuse to purchase things on credit that we don’t already have the money in the bank to pay for (except for cars and houses).  We’ll take the cash back/points/credit rating from the credit cards but we could just as easily buy it all with cash.  It just doesn’t make sense, IMO, to ignore the benefits of the credit cards, even if they are always paid off in full.

Post # 69
Member
5571 posts
Bee Keeper
  • Wedding: June 2011

We just finished paying off DH’s student loans last summer and I went to community college, saved and paid for my own so that’s taken care of. DH has a company paid for car and we bought mine with cash in January (it’s a very reliable, 2006 model). The only debt that we have is our mortgage. We’re working on saving and starting to invest now.
 
I strongly recommend Dave Ramsey’s book. It gave us quite a bit of perspective!

Post # 70
Member
2394 posts
Buzzing bee
  • Wedding: April 2010

We have no car, card or home debt, but our student loans are going to take forever to pay off.

Honestly, though, that doesn’t really bother me.  It’s all tidy and consolidated and we’re paying as much above the monthly minimum as possible.  Yeah, it’s going to take a loooooong time to get rid of, but the money was well speant and increased our earning power exponentially.

Post # 71
Member
2559 posts
Sugar bee
  • Wedding: September 2010

I brought about $4,900 in student loan debt after college. TBird doesn’t have any debt, so we consider ourselves lucky. We rent an apartment (going to move in a year anyway) but we both own our cars, so unless something goes south with those things we’re good for a while.

Post # 72
Member
321 posts
Helper bee
  • Wedding: March 2012

Yep–nearly everyone these days has debt of some sort–not necessarily a bad thing though–it shows you can reliably make monthly payments. 

We have too much debt, though.  I have $30K in student loans and $9k in medical bills; he has $5000 credit debt and about $10000 left on his car.  We don’t have a house, nor are we in an area where anyone making a normal living could buy one (the median price here is about 800,000–average is too painful). 

We’re working on getting better credit ratings, which by proxy means working on debt.  BUt if we’re ever going to own a house, it’ll have to be elsewhere.

Post # 73
Member
5667 posts
Bee Keeper

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@lefeymw: It still holds true in your situation. This quote is from the page you linked.

“In community property states, most debts incurred by either spouse during the marriage are owed by the “community” (the couple), even if only one spouse signed the paperwork for a debt. The key here is during the marriage. So if you incur a debt, such as a student loan, while you’re single, and then get married, it won’t automatically become a joint debt. (An exception is where a spouse signs on to an account as a joint account holder after getting married.) Some states, like Texas, have a more nuanced way of analyzing who owes what debts by evaluating who incurred the debt, for what purpose, and when.”

So basically, if your Fiance buys a car by himself before you’re married, you’re not liable for it even if you were married in a community property state. If he bought that car after you were married you could be on the hook for it, even if you didn’t cosign the loan. You could make yourself responsible for the car he purchased as a bachelor if you refinanced the loan or added yourself onto it.

Post # 74
Member
1995 posts
Buzzing bee
  • Wedding: June 2010

When getting married I had about 5K in auto debt.  DH had 100K (yes 100, that is correct not a typo!) in student loans.  We’ve since paid off the car and bought a 2nd car with cash.  We’ve paid down the student loans a lot but will be taking out another 75K for his graduate school over the next 2.5 years.  We have no credit card debt and live pretty frugally. 

Post # 75
Member
2319 posts
Buzzing bee
  • Wedding: July 2011

I have about $3500 on my line of credit. No other debt whatsoever. This really isn’t my debt. I paid of $8000 of FI’s CC debt with my line of credit. And now I am paying back into my line of credit. (At the rate he was going, I saved him approximately $2000 in interest payments!)

So while saving for the wedding, I was able to make smaller payments than I wanted to so now I still owe $3500.

I do not have a car. I pay ‘rent’ to my mom of about $800/mth. I am doing $500 right now as I am saving for the wedding. I have my name on my mom’s mortgage but we’ll be selling this place within the next couple of years because my parents want to downsize.

Fiance came into this relationship with no debt. However in 3 years he racked up that $8000 in CC. And it was not really spent on me. Yell Not that it makes it better. But I wouldn’t feel as pissed off while having to pay it off right now if I had gotten something out of it. Embarassed

He also has $2200 in store CC because he bought a snow blower and Father-In-Law slapped on a new mattress for himself on it which he never bothered to pay us back for because he “doesn’t have any money”. (I just really lucked out with my in-laws, didn’t I! Cry) Well we learned our lesson now.

Fiance also has about $3500 on his own line of credit that he used when he bought his own place.

Total: $3500 + ($3500 + $2200) = $9200

I wanted to marry debt-free but looks like it’s not gonna happen in like 1 month. (I mean,  just repaying MY $3500). After the wedding, I will just be concentrating on paying off the debt. However, I am not putting my name on any of his sh*t and vice-versa. I will, however, be paying off  his debt too while his income generates the household.

Post # 76
Member
1493 posts
Bumble bee
  • Wedding: October 2009

I’ve got around $3,000 left in my student loan debt. We’ve got our mortgage and car as the major debt. With my student loan debt, I’m hoping to be done with it by the end of next year since I’ve been paying over the minimum for a long time now.

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