Many adults who are in relationships may have certain reservations about their partner’s personal finance strategy. This can be due to many things, especially if their partner is dealing with a significant level of debt.
Approximately two-thirds of adults noted they would not want to marry someone who has a notable debt level, according to a report from Country Financial. Of those who are in a relationship, 55 percent said that debt would be a deal breaker, while 72 percent of single persons said the same.
“From credit cards to student loans, debt has become a major financial hurdle for many Americans to overcome,” said Joe Buhrmann, manager of financial security support at Country Financial. “It’s important to focus on reducing debt – not just for your love life, but also for your financial security. Just as you would dress yourself up for a date, you should ‘dress up’ your finances as well. Take the time to review your finances to determine a realistic plan for paying off your debt.”
More than seven in 10 of those in a relationship are aware of their spouse’s debt level, the report showed. Approximately four-fifths of those who are married explained they know how much debt their spouse holds. This level drops notably the less serious a couple gets. Only 54 percent of those who are engaged are aware of their partner’s debt, while 41 percent of those who are dating said the same.
Debt levels rise for college graduates
One major debt issue for Americans is the level of money they owe from their years in college, which can put a wrench in their financial strategies. According to a report from the Project on Student Debt at The Institute for College Access and Success, more than 70 percent of those who graduated school in 2012 have some level of debt.
“Despite discouraging headlines, a college degree remains the best route to finding a job in this tight market,” said Lauren Asher, president of TICAS. “But students and families need to know that debt levels can vary widely from college to college. If you need to borrow to get through school, federal student loans are the safest way to borrow.”
The average debt level for schools can range widely, from as low as $4,450 to as high as $49,450, the report added.