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We’re getting married and having a baby on the way. My wife offered to pay off my $ 10,000 student debt and my $ 7,500 car loan


Dear Quentin,

This past year has brought a ton of changes in my personal life. Most notably, the love of my life agreed to marry me. Unbelievable! Shortly after, we found out that she was pregnant. I’m in heaven and can’t wait to start my family! This will be the first child for both of us.

Already looking into the barrel at the cost of a marriage, my mind has been strained with the news that a little one will be on the way. I started to restructure my personal finances to anticipate this news “adventure“of ours. My future wife asked me to do the same for her in the short term, because she is, it must not be admitted, the most financially educated.

We’re both in our 30s and both earn over six figures a year, although my fiancee earns about 30% more a year than I do. She started working right out of high school, so she doesn’t have any student loans. She has debts, but nothing substantial. I owe a very small amount for my student loans (less than $ 10,000) and a small amount for my car (around $ 7,500).

My question is: how and when should I pay off my debt? I don’t necessarily want to pass my debt on to my future wife because eventually we will have to buy a house and I don’t want that to hurt her credit history. I have a budget to pay off all of my debt before the baby arrives.

However, I will get married before I can pay the full amount I owe. My fiancee, who has more cash than me, offered to help me pay off the debt in full since we will be joining all assets once married anyway. I just want to make the safest decision for my new family members, as well as for myself.

Does the timing of all this matter? Or do I make mountains with molehills?


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Dear future,

It’s a happy story indeed! There are so few around these parts. I’ll tell you what I would do and then add what you could do. They differ slightly, because I’d like to answer your question – without being too prescriptive or presumptuous.

If I were you, I would have the smallest, cheapest, and most intimate wedding in my backyard, a friend’s backyard, or a restaurant with a backyard, and I would put all the money I got. was going to spend for the wedding in my loans.

Later, I would throw a wedding party when people could socialize more freely and when my finances were more stable. It would allow me to celebrate the wedding with my family and close friends, and have a more public party later.

The average cost of a wedding is between $ 12,400 in Arkansas and $ 30,400 in Massachusetts, according to the survey. Of course, people can spend even more on their special day. Lots of money for a lot of stress.

It makes sense to get rid of both loans, even in this low rate environment, but only if it doesn’t delay other goals like saving for a house.

It makes sense to get rid of both loans even in this low rate environment, but only if it doesn’t delay other goals like saving for a house. You can then open a joint account using your existing payment plan with the goal of saving $ 17,500.

You have little reason to worry about your wife’s credit rating. A credit rating is based on your payment history, your use of available credit, whether you take out new credit, the length of your credit history, and your credit mix.

It is a very exciting stage in life. You are young enough to have the best part of your life ahead of you with a fraction average student loan debt, and you’re old enough to have the agency and the energy to make it all happen. Enjoy the ride!

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