A recent CNBC article reveals just how concerned couples are about their student loan debt. The article 1 in 8 Divorces Is Caused by Student Loans is stunning and points out how these debts need to be talked about more seriously and more often.
It has long been known that financial stress is a leading cause of divorce, but this new link specifically to student loans hits even closer to home for young married couples. With tuition and student loan debt at all-time highs, graduates are coming out of school strapped with more debt than ever – $34,144 on average.
High student loan debt is causing delays in several areas for young people. With people allocating thousands per year to paying down student loan debt, they are delaying things like buying a house, getting married, and having kids. According to Student Loan Hero, “13% of divorces blame student loans specifically for ending their relationship.” Although it is staggering that this many divorces are attributed to student loan debt, we need to find a way to help those that are having these issues. Until the root of the issue, tuition inflation, is fixed people can help reduce this statistic by creating a dialogue about the financial issues in a couples’ lives.
Communication can help with a lot of issues a couple is facing, but discussing financial issues is apparently more important than even we realized to having a successful marriage. In addition to discussing all debt each person has, they should come up with a plan of attack on paying down that debt as well as saving for the future. To prepare for retirement, trips, or college costs for kids, every person can benefit from having a personal financial plan. Whether it be with professional software, such as what we at Twelve Points Wealth Management use, or basic software like Excel, each couple should start somewhere so they can avoid becoming another statistic like this one.
Twelve Points will host a webinar, Saving for College: Planning and Financial Aid Tips, on Thursday, September 27. Click here to register.