Were you in debt before you got married? Do you talk about money with your partner? How do you handle your money even if you do not have a partner? Saturday nights on CNBC’s “Til Debt Do Us Part” Gail Vax-Oxlade shows couples how to get out of debt and build a stronger relationship. If they are willing to do whatever she says, they are rewarded with $5,000.00. Michelle and Zack are newlyweds. Michelle is an office administrator earning about $34,000 a year. Zack was in sales before deciding to go to school full time and become an architect. He furnished the apartment (without Michelle’s input) on credit, bought a second hand car (also without Michelle’s input) on credit and leaves Michelle to figure out how to pay for everything. Michelle copes with the stress by shopping. After reviewing their expenditures, Gail shows them they are overspending by $3,000.00 a month. At that rate, in five years they will owe $270,000.00. Ninety percent of marriages break up because of money problems but this couple agrees to follow Gail’s program. The first step is to cut up their credit and debit cards. Then they are .put on a cash budget reducing their spending from $4,500 a month to $1,300.00. Despite that, they will have to earn $500.00 more a month to make the budget balance and repay debt. Gail then has movers take away their leather couch, big screen TV and deluxe coffee maker. Why? Because they are not paid for. A week later Michelle is working at the stables and Zack has picked up a sales job. The biggest surprise is they have money leftover! As a reward, Gail returns their furniture. Then Gail has them join another couple and play the Newlywed Quiz. Each couple answers the following questions. How do you split chores? How many kids do you want to have? Who is going to stay home with the baby? How do you want to spend your time? Not surprisingly, Michelle and Zack learn things about each other they did not know before. Michelle realizes Zack does a fair share of housework and Zack is surprised she wants to spend more time having fun. Their next challenge is designing their home. Despite their different styles, (he is very detail-orientated, she favors broad strokes), they are talking and enjoying each other. By the end of the show, it is clear this couple is on the right track. If they continue with Gail’s plan they will be out of debt in twenty-two months, have money in savings and an emergency fund. They have earned the $5,000.00 and a canoe camping trip! The non-compliant couples are a sharp contrast. It is disheartening because their turmoil and anxiety will surely escalate. It is hard to predict who will come away victorious but you stand to gain valuable insight about your relationship to money. |
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