If you and your spouse are on a mission to eliminate debt, then this blog is for you!

I know, from personal experience, that money can be a source of stress. When you struggle to manage finances together, it can create tension, and in the worst-case scenario, even lead to a break-up. 

When I work with couples, I know that one of the most significant financial challenges that they face is managing and eliminating debt. Tackling debt as a couple requires cooperation, communication, goals and a clear plan. 

In this blog, I will walk you through practical steps to help you and your partner work together to eliminate debt and improve your financial well-being.

If it’s worked for us, then I know the following strategies will work for you too! 

First you need to talk about money! 

I get it, talking about money can be a difficult. 

It’s one of those subjects many people avoid, especially when you have debt. However, believe me when I say that open communication about finances is vital for your relationship to succeed. 

It took my husband and I nearly two decades to talk about money. When we did, it was a complete game changer for our finances and our marriage.

My husband was totally overwhelmed when it came to talking about money. I had to take a step back and learn how to talk to him about money, and create a nonjudgmental environment so that we could eventually have a conversation – without arguing!

If you’re struggling to talk to your spouse about money, pick up your copy of Get On The Same Financial Page As Your Spouse. It’s full of top tips and strategies on how you can talk about money in a positive way. Get your copy for free today!  

Have the Conversation Early: 

In an ideal world, you should have open and honest discussions about money before you start living together or combining finances. Address all aspects of your financial situation, including budgeting, day-to-day expenses, and existing debt. The sooner you begin these conversations, the easier it will be to work together on financial matters down the line.

Read more: Money questions to ask your partner BEFORE you get married. 

Create a nonjudgmental environment: 

I know that if your tone of voice, along with your body language are telling your spouse that they are useless with money – this is not going to go well!

When discussing finances, especially debt, it’s essential to stay calm and supportive. Create a space for honest and open conversations, free from judgment or blame. Take it from me – stay clam. There’s nothing that you can’t sort out together.

Create a Shared Vision: 

Find a time when you can sit down together where you can look at your current financial situation.

Gaining an understanding of your current personal finances will enable you to create SMART money goals. It’s only when you have laid all the cards on the table, bank statements, credit card statements, that you will be able to have a clear understanding of where you are and where you want to be.

Read more: Setting Financial Goals 

Take Positive Action to Eliminate Debt

Once you’ve opened the lines of communication about your finances, it’s time to take action. My number one suggestion for you is to eliminate all debt – apart from your mortgage. 

Now, this may seem a daunting task. And if this is true for you, then break your debt down into smaller chunks.

Focus on one debt first and tackle that one head on.

Be sure that you celebrate the small wins along the way. We celebrated with a high five and an encouraging word every time we knocked another £1000 off the debt. It sounds silly but it was a time when we were able to remind ourselves that we were moving in the right direction.

Eliminating debt takes a systematic approach and commitment from both partners. Here are five key steps to follow:

1. Make a List of All Debts

The first step in eliminating debt is to know exactly what you’re dealing with. Sit down together and make a list of all the debts each of you has, and calculate the total amount owed. This conversation must remain honest and free from blame. Here are some important questions to ask each other:

• How many credit cards do each of you have, and what are the balances?
• Do you pay off your credit cards in full every month?
• Do you pay your bills on time?
• How long do you expect it to take to settle the outstanding debts?
• What are your spending habits?
• Are there any financial obligations from previous relationships, such as child support?

Answering these questions will give you both a clear understanding of your financial standing and where improvements are needed.

2. Check Your Credit

After listing your debts, it’s essential to check your credit reports. This is particularly important if you’re not sure about all the debts you owe. You can obtain a free report from Experian. When you review your credit report you are ensuring that here are no surprises and gives you an opportunity to address any errors.

3. Develop a Family Budget and Debt Payment Schedule

Next, develop an intentional spending plan. 

Each partner should share how much they earn (both gross and net) and outline their individual expenses. 

Don’t forget to include both fixed, essential expenses (like rent, groceries, utilities, and insurance) and flexible, discretionary spending (like dining out, entertainment, and personal care). 

Keeping track of all spending categories helps prevent budget “leaks,” where money can slip away unnoticed.

Once you have a clear picture of your income and expenses, create a debt payment schedule. This will help you prioritise which debts to pay off first and how much you can contribute each month toward eliminating them.

4. Track Your Monthly Expenses

To successfully reduce debt, tracking your expenses is crucial. Save each receipt and record the amount in the appropriate spending category. Based on your identified budget categories, you can choose from a variety of methods for tracking expenses:

Apps: Tools like Mint.com and You Need a Budget are available for smart devices and can help you categorise and track spending. Make sure you choose an app that works for you and check for any hidden fees.

Spreadsheets:  If you prefer a hands-on approach, creating a spreadsheet to track expenses allows you to customise your tracking system. Get your intentional Spending Plan for free today! This is the spreadsheet that worked for us! When we started using this spreadsheet – together, it was a game changer for our finances – an our marriage!

Pen and Paper: A simple, low-tech solution, writing down your expenses can be just as effective as digital tools.

Remember, that personal finances are personal. What might work for your friends, may not be the answer for you.

I encourage you to test and trial what works best for you.

After a month of tracking expenses, you’ll have a clear idea of where your money is going. This allows you to pinpoint areas where you can cut back on your spending and reduce debt. Set limits for each category and try to stick to them. If cutting back on certain expenses proves difficult, focus on reducing non-essential spending or adjust your budget to prioritise necessary expenditures.

Reducing unnecessary spending will free up more money to eliminate debt and build savings, helping you move closer to financial stability.

5. Develop a List of Short-Term Shared Goals

Once your budget is in place, it’s important to set some short-term, SMART money goals that both you and your partner can work towards. These goals should be achievable and designed to keep you motivated. Here are a few suggestions:

Build a Small Emergency Fund:

A great starting point is building an emergency fund of at least £1,000. This fund will prevent you from relying on credit cards for unexpected expenses, helping you avoid accumulating more debt.

Tips to build your savings:

Set up automatic deposits from your pay into a separate savings account.

Treat savings like a bill that you pay each month—pay yourself first.

Save loose change and deposit it regularly.

Use bonuses or tax refunds to boost your savings.

Eliminate Debt: 

Set specific goals for reducing debt. Choose whether to use the snowball or avalanche method to guide your repayment plan.

The Snowball vs. Avalanche Method

When it comes to paying off debt, two popular strategies are the snowball method and the avalanche method. Both are effective but differ in approach and psychological focus.

Snowball Method: Focuses on paying off the smallest debt first while making minimum payments on larger debts. Once the smallest debt is paid off, you move to the next smallest. This method provides quick wins, boosting motivation.

Avalanche Method: Prioritises paying off debts with the highest interest rates first. It’s a more financially efficient approach, as it reduces the overall amount spent on interest over time.

Choosing between the two depends on whether you are more motivated by immediate results (snowball) or long-term financial savings (avalanche).

We chose the Snowball Method as we were motivated by the quick wins!

Read more: Debt Snowball vs Debt Avalanche 

Long-Term Shared Goals

In addition to short-term goals, developing long-term financial goals is equally important. One key long-term goal is building an emergency fund of 3–6 months’ worth of living expenses. Having this safety net provides financial security and peace of mind, protecting you from falling back into debt due to unforeseen circumstances.

An emergency fund also allows you to handle disruptions like job loss, medical emergencies, or significant repairs without the need to rely on credit or loans.

Know your why

Knowing your why is super important. It keeps you motivated.

When we were getting out of debt, we created A4 posters and put them around the house. The word ‘WHY’ was in large letters in the middle and we surrounded it with pictures of all the fun things that we could do once we were debt free!

Not only was this a great reminder to us of our future, but it was also a great conversation starter when people came to visit. We could explain the reason behind the pictures.. and why we couldn’t join them for takeout pizza on a Friday night!

Dream Big and Make It Happen

Once you’ve eliminated debt and built a solid emergency fund, it’s time to focus on achieving your long-term dreams. With a strong financial foundation, you and your spouse can begin planning for the future.

Whether it’s taking a luxury holiday, putting a downpayment on your dream home, or paying for a wedding, financial freedom opens the door to endless possibilities.

If any of these steps seem overwhelming or you’re unsure where to begin, I’m here to help.

Eliminating debt is not easy – but it is possible.

I can offer you realistic steps and advice to help you and your partner reach your financial goals together – as a team.

Let’s Work Together

Leave a comment below or get in touch to schedule a complimentary, no-obligation call, and let’s start your journey to financial success together!