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‘I almost fell off my chair’: This 40-year-old wife was shocked when her ‘financial guru’ husband revealed $520,000 in hidden debts that even involved debt collection agencies. What should we do now?

‘I almost fell off my chair’: This 40-year-old wife was shocked when her ‘financial guru’ husband revealed $520,000 in hidden debts that even involved debt collection agencies. What should we do now?

Discussing financial matters is not easy, even the person you marry arrive.

That’s what Cassandra, 40, discovered when she discovered her husband had been hiding more than $500,000 worth of debt.

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“I almost fell off my chair,” she said, describing the moment her partner Aldo finally revealed their financial situation. “I was stunned.”

The couple said their conversation was sparked after watching an episode of Ramit Sethi’s Netflix show “How to Get Rich.” Call a financial expert directly Ask for some advice.

secret debt

Cassandra and Aldo, 41, have been married for 18 years and have two children. Despite the longevity of their relationship, they rarely discussed money matters, which is why Cassandra didn’t realize until recently that the couple was in debt totaling $520,000. About $66,000 of that amount was charged for failure to repay the loan.

Aldo’s reluctance to discuss the debt is not unusual.About 30% of men and 19% of women hold this view Admit to hiding A survey by technology financial services company Bread Financial revealed credit card balance information from partners. Hidden debtIt looks easier than it talks about.

Sethi said money conversations are often filled with guilt and denial, which makes it similar to talking about health issues.

“We see clues everywhere, we feel pain,” he said. “But instead of taking an honest look at what we eat and our activity levels, we make up these very complex, convoluted stories about us. How does metabolism change.”

He added: “Everyone around us is doing the same thing, so we really believe that.”

read more: Owning real estate for passive income is one of the biggest myths in investing – but here it is How to actually make it work

However, Cassandra misses all clues about the family’s deteriorating financial situation. She said her husband is a “financial guru,” which is why he’s in charge of all budgets.

“He worked in finance, he knew all these things. I had friends who came to him for financial advice, so I never thought we would be in this predicament,” she said.

The couple seems to recognize they have a spending problem. Aldo sees his role as protector and provider, so he protects Cassandra from money pressures and has a hard time saying no to things.

“I mostly say ‘yes’ and then try to figure out how to make ‘yes’ happen,” he said.

“We went on vacation and we got a lot of good stuff, but it was all through credit cards and loans,” Cassandra said.

Fortunately, Sisi sees a clear path out of his predicament.

Easy exit

Despite being in debt, Cassandra and Aldo still have a realistic path: escape this burden, mainly because they have high incomes. Their combined base salary is $165,408. However, Aldo’s variable quarterly bonus is approximately $130,000 per year. This puts them in the top 10% of U.S. households based on income. analyze Provided by SmartAsset.

They should live a comfortable life. Unfortunately, this is not possible due to spending habits fueled by credit cards and personal loans. Sethi estimates that the couple spent 94% of their take-home pay on fixed costs, much of it related to debt payments. Excluding debt payments, its fixed costs account for 62% of real wages.

“Honestly, these numbers scare me,” he said.

He recommended that the couple stop using their credit cards immediately and start an automatic debt repayment plan, preferably targeting the credit cards and loans with the highest interest rates first.

But the couple needed to shift their perspective on money and change their spending habits. However, even Sisi admits this is not an easy strategy.

“People who are in debt will talk about all other options except actually changing their spending and creating an automatic debt repayment plan,” he said.

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This article provides information only and should not be considered advice. This article is provided without warranty of any kind.

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