Debt can feel heavy, especially when you’re sharing it with a partner. Whether it’s student loans, credit cards, or other bills, money troubles can put a serious strain on your relationship. But here’s the good news: paying off debt together can actually strengthen your bond and bring you closer to your goals. Take it from Brian and Lindsay Baldwin, a couple who tackled $130K of student debt by making a plan, downsizing their lifestyle, and working as a team.
If you’re ready to get serious about your debt while building a future with your partner, here are some practical tips to get you started.
Set Shared Goals (And Make Them Clear)
Start by sitting down with your partner and talking openly about your financial goals. What do you both want to achieve? Whether it’s paying off debt, saving for a home, or planning for a family, working toward shared goals makes the journey feel meaningful.
Pro Tip: Write down your goals together. Try setting short-term goals first, like “save $100 a month” or “reduce dining out to twice a month.” Short-term goals are motivating and help keep your progress in focus. If you need help organizing, check out SMART goals—these keep your goals Specific, Measurable, Achievable, Relevant, and Time-bound.
Don’t Forget to Save for Small Wins
Just because you’re focused on debt doesn’t mean you should stop saving entirely. Even a small amount set aside monthly can make a difference, especially for those unexpected expenses. Plus, once you’re debt-free, having a savings habit already in place makes it easier to build wealth.
Quick Tip: Even setting aside $20 or $50 each month counts. You don’t have to save a huge amount, but making it a habit builds good financial discipline.
Focus on High-Interest Debts First
Debt repayment is about strategy. Start with your high-interest debts first, like credit cards, to save on interest over time. This method, called the “avalanche method,” involves paying minimums on all debts but putting any extra money toward the highest-interest debt. It’s a faster way to cut down on how much you pay overall.
Money-Saving Move: If high-interest debt feels overwhelming, try setting a small goal each month for how much extra you’ll put toward it, even if it’s just $10 or $20 above the minimum.
Consolidate Debts When It Makes Sense
If you’ve got multiple debts with different interest rates, consolidating might help. This means taking out one larger loan to pay off smaller, high-interest debts. It can simplify your monthly payments and potentially reduce your interest rate, which helps you save in the long run.
What to Know: Make sure the loan has a lower interest rate than your current debts. Check for terms and any fees associated with consolidation. And remember, this doesn’t erase debt, but it can make it easier to manage.
Pay More Than the Minimum Each Month
Making only the minimum payments on credit cards or loans can drag out repayment for years, not to mention add loads of extra interest. If you can afford to pay a bit more than the minimum, you’ll knock down that balance faster and reduce interest.
Tip to Try: Even small amounts help. If you have a $500 minimum, try paying $550. Every little bit adds up over time and cuts down on interest, getting you debt-free faster.
Tackle One Debt at a Time
If you have multiple debts, focus on paying off one at a time while paying the minimum on others. The “snowball method” is popular here: start with the smallest debt to build momentum and then work up. Paying off small debts first can give you a quick win, which helps keep motivation high.
How It Works: Let’s say you have three credit cards. Pay off the one with the lowest balance first. Once it’s clear, use the amount you were paying toward it to focus on the next smallest balance. Rinse and repeat until you’re debt-free!
Track Every Dollar You Spend
Tracking your spending is crucial if you want to stay on top of debt repayment. Review your expenses every month to see where your money is going. You might be surprised to find areas where you can cut back—like a coffee habit or takeout spending.
Pro Tip: Use a budgeting app or just jot it down in a notebook. Tracking expenses helps you stick to your budget, avoid unnecessary splurges, and stay focused on your financial goals.
Keep a Positive Mindset
Debt can feel like a huge weight, but it doesn’t have to define you. Remember, debt itself isn’t “bad”—it’s just a financial tool, and lots of people use it to build a future. Keeping a positive attitude and viewing your debt as something manageable can make the process feel a lot less overwhelming.
Motivational Tip: Celebrate small wins along the way, even if it’s something as simple as paying off one card or hitting a savings milestone. A latte or a movie night doesn’t hurt as a reward now and then!
Have Weekly Financial Check-Ins with Your Partner
Consistency is key when it comes to sticking with debt repayment. Schedule a weekly “financial huddle” with your partner. These short check-ins keep you both accountable and give you time to review your progress, upcoming bills, and brainstorm new ways to save.
Try This:
- Start by reviewing your shared goals.
- Check your bank accounts and cash on hand.
- Go over bills coming up in the next two weeks and assign who’s paying what.
- End with a brainstorm: Can you add an extra $10 or $50 toward your debt goals this week?
Debt can feel overwhelming, but with a game plan, a positive mindset, and a partner by your side, you can tackle it and reach your goals. Remember, every dollar counts, and every little win brings you one step closer to financial freedom.
