Imagine how you will feel finding out from your lender that your partner has compulsive gambling habits. This not only mars your credibility in the financial market it also razes the relationship that you shared with the person till you never knew about his/her finances. Most of the couples seem to be happy in life before they have thought of jointly applying for a property or building an asset. Many of us are unaware of the spending habit of our spouse or partner. Suppose you have applied for a home equity loan or loan that refinances your mortgage. Your spouse is a co-applicant in this process. The bank or the lending agency suddenly disapproves your application because the co-applicant has a terrible credit history that you never knew. People enter into relationship without even knowing their partner's credit habits. Many people only comes to know of such habits in situations of property dealings or investment of lump sum amount. If there are no pre-agreed terms between partners /couple about spending habits, priority spending, the financial situation can be deteriorating with bad money management. The thumb rule for debt consolidation in couples is proper and improved communication. Your partner can help you with his /her finances or advice or just moral support in times of difficulty. Even if your partner thinks of a debt consolidation move to bring you out of the credit burden that you have accumulated, situations won't improve for the better if you continue spending high on your credit cards or gamble with the money or just go on spending on luxury items. You need to budget your money and ensure priority spending like medical bills, gas bills, education of children etc. Sometimes if you have a bad credit score and your partner has a very good credit performance, then many lending agencies will grant the loan if your partner co-signs in your application. So even if you are not enough credible for your repayment promises your partner who vouches for you is jointly responsible for any non repayment. In such cases your moral responsibility might force you to cut back your spending and save money for repayment on time. In a way debt consolidation efforts in couples are often effective if they are co-operative to each other and to their creditor. A combined effort often helps quick repayment of outstanding debts and make them debt free in a period which otherwise would have been impossible if any one of them had tried the same alone.
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