Girlfriend debt account
James has no debt, and he's also gotten a good start on saving and retirement. He and his girlfriend are planning to get married soon, and she has about $90,000 in debt. She wants to get out of debt, and is trying to pay it off, so James asks Dave if he should start putting money aside to help with the debt after they're married.
QUESTION: James is in his late twenties, and he has no debt. He has also gotten a good start on saving and planning for retirement. James and his girlfriend plan on getting married in the next year or two, but she has around $90,000 in debt. She wants to get out of debt and is working toward paying it down. James asks Dave if he should temporarily slow down his saving for a house and put cash aside for her debt when they’re married.
ANSWER: Yes. And I would have a “girlfriend debt” account. That way when she becomes your wife, you two can write a check the moment you get back from the honeymoon and be debt-free — or at least knock out a huge portion of the debt. After that, the two of you resume saving for retirement, a house and so on.
That, James, is exactly what I would do. You’re right in line with my thinking on this.