#USA #Fort Lauderdale #Debt.com #Credit Card Debt #Divorces

The Growing Impact of Credit Card Debt on Marriages

According to Debt.com’s recent annual Debt and Divorce survey, a staggering increase in divorces can be traced back to issues surrounding credit card debt. This year, 42% of divorced Americans identified credit card debt as a significant contributing factor to their marital separation, marking a notable rise from 34% last year and 29% in 2023.

Rising Financial Stressors

The complications of marital relationships do not arise solely from infidelity or incompatibility; financial struggles are also at the heart of many breakdowns. Michael Koretzky, the Editor-in-Chief of Debt.com, explains that while couples often communicate on various life decisions—from where to live to family planning—they tend to skirt discussions surrounding finances. The lack of communication regarding debt burdens can exacerbate marital tensions, leading o marital breakdowns.

Survey Insights

The survey reveals startling statistics:

• - 42% of respondents consider credit card debt and extravagant spending as primary reasons for their divorce.
• - 37% admitted to hiding credit card debt from their partners.
• - 38% believe that concealed debt alone should justify a divorce.

Despite the severe implications of these financial secrets, a disconcerting 65% of couples did not seek professional help or debt relief, with many often accumulating high balances in silence, leaving one in five couples with over $15,000 in debt unresolved.

Young People Face Greater Risks

Younger generations are significantly affected, particularly Generation Z, where nearly two-thirds cited credit card debt as a factor in their divorces. Millennials followed closely behind. In contrast, Generation X and Baby Boomers reported lower but still troubling instances.

Howard Dvorkin, CPA and president of Debt.com, emphasizes the need for transparency and communication about financial matters within relationships. He argues that ignoring debt issues creates not only financial strain but emotional burdens that can dissolve marriages.

The Reality of Financial Infidelity

More than a third of respondents admitted to hiding credit card debt from their spouse, with more than 50% of Generation Z admitting to these financial secrets. For the first time, the survey posed a question regarding whether hiding credit card debt should necessitate divorce, and 38% of participants affirmed it should.

Dvorkin further underscores the notion that credit card debt's ramifications extend beyond mere financial figures; they involve deception and secrecy, which are detrimental to relationships. He warns that without addressing debt as a fundamental issue, the trend of love lost due to financial strains will persist.

Emotional Costs of Financial Secrets

Nearly 70% of respondents recognized hiding credit card debt as a form of “financial infidelity.” Unfortunately, this acknowledgment does not translate to action, as a mere fraction of couples sought assistance through professional debt management or financial counseling.

Consequences of Divorce

Financial difficulties often worsen post-divorce. Over half of respondents indicated they accrued new debt after separating, with 26% accumulating balances exceeding $10,000. Many reported drops in credit scores by over 50 points.

Changes in household income were also prevalent, with one-third of couples indicating a decline in their income by more than 25% within a year of divorce. While some experienced income surges, financial instability remains widespread and challenging.

When asked about recovery processes, 27% felt they managed their financial situation more expediently than their emotional recovery. However, 20% still reported challenges, whether financial or emotional.

A Call for Action

Debt.com's survey paints a concerning picture of credit card debt as not merely a financial concern but as a relationship killer. Despite increasing statistics, the absence of professional intervention suggests many couples are suffering in silence. Debt.com serves as a reliable source for individuals seeking aid with credit card debt, with efforts made to connect them with professionals and educational tools, empowering Americans to regain control over their finances.

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This situation signals an urgent need for open dialogue about debt within relationships to help preserve marriages and promote financial wellness.