Dealing with debts in a family is of the most challenging tasks you can ever experience in your marriage life. Debt has put strains on many marriage relationships. It creates a feeling of insecurity among the spouses as well as in their children. It makes priorities even very challenging. Some have been deeply frustrated and angered with one another because of debt. Simply put, debt can make family life a living hell. That is, it has always been recommended that you do it takes to pay off all your debts as fast as you can. 

The questions, how do you do that? Undeniably, taking the first step when you are overwhelmed with debt is always the hard thing. But trust me, you can make it easier by being pragmatic. Start by sitting down with a view of addressing the problem. You need to address the issue objectively. This means all the members of the family must be willing to compromise. Statistics show that many families who are overwhelmed with debt live beyond their means. Interestingly, people do not even recognize that they are living an expensive lifestyle they cannot afford.

How can you deal with debt effectively in the family? We are going to look at several approaches that can be pivotal. But again, remember it requires concerted efforts. Since the family is headed by the father assisted by mother, you can set strategies and share responsibilities that will help you get out of debt. For instance, you can let one partner plays the role of the spender and the other one the saver. The saver can deny the spender funds to cater for new purchases unless it is absolutely necessary. Since you understand what you need to achieve as a family, this is a decision that should not be questioned. As they say, extraordinary conditions call for exceptional measures. 

However, such an approach may end up creating more tension. You need to agree on the most effective ways of surviving your family debt. The following tips will prove beneficial in this regard.


Any problem revolving around personal finance requires budgeting. A budget is imperative when it comes to dealing with family debts. Sometimes the problem is not even that your earnings cannot sustain you; in most cases, poor spending is the problem. Do you think you can ever get out of debt without a budget? That is a dream that can never come true. It is only through budgeting that you can be able to track your spending and know what really consumes your finances. Again, it is only through budgeting that you can live within your means. This is something that everyone knows. The problem is always creating a realistic budget. Many people create budgets and do not follow them.

To come up with a realistic budget, use the 50/30/20 rule. This budgeting approach has been there for more than a decade and has helped many families get out of enormous debt. Once you have your net earnings as a family, divide your expenses into needs and wants. Needs are the fixed costs that you cannot do without and may include rent or mortgage payments, and food. Spend a maximum of 50% of your net income on these expenses. Wants are the expenses that can be postponed, even though they are still relevant. They include such things as entertainment and new clothing. Spend a maximum of 30% of your net income on them. The remaining 20% should be devoted to debts and saving. Since you are struggling with family debt, it wouldn't be wise to save. So, devote all the 20% on debt payment. Remember, by clearing the debt faster, you will be saving on interest payment. Be determined to follow this budget to the later.

Cut Your Family Expenses

With a budget in place, you can easily identify where you are spending too much. If you recognize one area, try to reduce the expenditure by half for like three months. This helps you determine whether it is actually possible to limit that expenditure. One area that families spend too much on is grocery. There is always a temptation to pick the things you did not budget for in the grocery stores. How can you deal with this condition? Have a list of the items you intend to buy while at home. Go to the store and once you pick them, pay and leave immediately. The purpose of cutting your expenses is to save some extra funds that can be devoted to debt payment. You really want to live a debt-free life, this should not be a difficult thing to do.

Look for Ways of Getting More Income

You are in a problem as a family, and it is only essential for each one to look for ways of increasing family income. You can sell any asset of value that you do not use at the moment and use the proceeds to pay off the debt. You can start a small family business tom help generate more income. Alternative, consider other skills that you have and use them to earn more money on a part-time basis. Can you work overtime? If there is a consideration for overtime in your company, do not overlook that. Can you freelance? For instance, there are so many online opportunities, such as article writing. If you have the necessary skills, use them to supplement your family income.

Identify the Reasons Why the Family Got into Debts and Be Determined to Make Relevant Changes

You are not going to survive a family debt if you continue following the same course that led you to debts. You are supposed to find out the reasons why you got into debt and do things differently. For instance, you may have taken a lot of loans following a job loss. This is something that can happen again in the future. You can resolve to avoid over-relying on debt again in the future and make plans that will make it possible. If you want to borrow money with low interest rate borrow visit loans from licensed money lender .

Prioritize Debt

List the debts that you owe and decide on the ones to pay off first. The common approach for paying debt include avalanche and snowball strategies. The former advocates for paying off high-interest debts first. This means you will have to arrange your debts in order of interest rates. Paying the high-interest loans first will help you save a lot of funds. Snowballing advocates for paying off smaller loans first. This way, you will gain motivation to continue paying until you finish.

The Bottom Line

You can successfully survive family debt. However, it requires concerted efforts. We have discussed the approaches you can use in this regard. If you remain determined, your efforts will bear fruits. If you really feel overwhelmed with debts, consider seeking professional help.

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