My husband has $ 75,000 on his credit card and plans to spend $ 8,000 on sporting events. What can I do? Am I responsible if he dies?
What steps can I take to protect myself from my husband’s financial decisions? We are both 47 years old and have a good income (together almost $ 400,000 per year). I earn more, but my husband has $ 75,000 in credit card debt and he continues to charge more.
I have no credit card debt. I have about $ 280,000 in a 401 (k) and have recently started saving more for retirement. I also have a very good pension that I am invested in. My husband has about $ 20,000 in his 401 (k) at my request.
He likes to spend. He travels a lot – apart from family trips – and he only spends money. He recently told me that he was planning to buy sports tickets that cost $ 8,000. He changes cars regularly (he rents them). I have a car and no car payments.
My credit is great, so we bought our house on credit. His credit is low – he has high usage and late payments. He sees nothing wrong with this financial situation. I am concerned and want to focus on preparing for my retirement.
I love my husband. But I’m worried that his expenses may impact me and our child. For example, if he were to die with this debt, would it impact me even if it is not in my name?
This is madness. Maintain separate bank accounts. Do not co-sign any credit cards or loans. Refuse to pay for vacation or other luxuries. Set a family budget so they can see exactly where the money is coming from and where it is going.
There is a fine line between a spectator and an animator. You are do not responsible for your husband’s behavior, of course, but you also don’t want to help fund the illusion of this lifestyle he’s created for himself.
Not paying off your credit card in full every month is just wasting money. Maintaining a balance of $ 75,000 and spending more money on luxury is unwise. It puts your future in danger. His credit rating is a direct result of his behavior.
How can you budget and enjoy vacation planning or hope for a peaceful retirement while making these one-sided decisions with no regard for their impact on you? He needs to see this photo in black and white – and in red.
Set a family budget so they can see exactly where the money is coming from and where it is going.
Take out a piece of paper to show her your common income and expenses. If he was doing a monthly average minimum payment $ 1,500 on a credit card at 18.2% interest, it would take 8 years to pay off the principal – plus $ 66,521 in interest.
Place his $ 75,000 credit card bill in the center in red. Add the $ 8,000 sports tickets, with an arrow and a question mark as to where the money is coming from to pay for these tickets. Same as where the money comes from to pay off the credit card balance.
He has to see how he lives his life versus how you live your life. Your husband needs intervention. Use a third party, preferably a financial advisor or financial therapist, to provide an objective view of your finances. Plus a pair of scissors for the map.
He asks for an intervention. Bring a second person, preferably a financial advisor or financial therapist, and a pair of card scissors.
The Federal Trade Commission and the Consumer Financial Protection Bureau both say that a spouse is not responsible for their partner’s credit card debt if they die before they do. The contract is between your husband and the credit card company.
However, your responsibility can be engaged in a community state, according to Bankrate.com. There are nine communal ownership states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington state, and Wisconsin.
Interrogate him why he thinks his credit rating is so low. Remind him that you would not have this house on his credit rating. He can’t keep relying on you to reach those major milestones as an adult, while pretending that his actions only impact him.
He lives in a fantasy land and needs a wake-up call today.
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