Business Operations, Finance, Technology
Is Debt Affecting Marriages? How Loans Can Negatively Impact Your Married Life.
- Aug 02, 2022
- Jordan Akins
Everyone has their idea of a perfect wedding. Everyone wants a lavish ceremony that’s memorable to last an entire lifetime, and why not? After all, most of us get married only once. Those about to marry picture a beautiful destination with a gorgeously decorated altar, people in their best attires, flowers, music, and the list goes on and on.
Even the slightest essence of a perfect wedding comes at a hefty price. The average cost of a wedding in 2021 was more than $22,000 (excluding the engagement ring, which costs $6000 on an avg). The average cost per guest at a wedding reached a record height of $368 per guest in the same year. In many cases, wedding loans reached up to five figures with interest rates as high as 30%.
What is Wedding Debt?
Before discussing how debt affects marriages, let’s look into wedding loans. There are lending services that exclusively provide wedding loans. These are specialized loans that come with unique terms of repayment. Personal loans can also be used for weddings. Couples tend to opt for these specialized wedding loans as personal loans depend on credit scores and may also limit the desired loan amount.
The notorious expense of weddings in the United States is rising. Couples starting their married life with debt inevitably face hardships in the future. Experts found that Money is a topic behind major arguments that leads to the demise of a relationship among most couples. They also pointed out that money fights are the number one reason behind failing marriages that lead to divorces, separations, infidelity, etc.
The real problem is this scenario isn’t failing marriages. It’s the marriages that don’t happen. Among the rising lifestyle behaviors of recent times, a distinct trend is emerging – Couples avoiding marriage due to financial constraints. Couples are often more prepared to cohabitate than to carry the burden of such high wedding costs. The lack of communication about household debt is a major cause of stress and tension among cohabiting and married couples.
Multiple states in the US have debt laws that make debt-sharing mandatory post marriages. In community property states like Arizona, Wisconsin, Nevada, California, Louisiana, Idaho, Washington, New Mexico, and Texas, loans taken after marriage are shared between a couple regardless of individual or joint account status. In these nine states, debt incurred before marriage is recoverable from an individual, but those incurred after marriage are collectible from an individual and the spouse.
Not just Borrowers, Debt Collectors too
It’s not just borrowers who face the risk of a crumbling relationship caused by debt. It’s the debt collectors too. Like a debt can be a burden for borrowers, for a collector, recovering that same debt is a huge responsibility they carry on their shoulders. How the life of a debt collector twists and turns and how they nurture their relationships depends on their mental health, which revolves around achieving debt collection goals. In a way, piling up debt can negatively impact the relationships of both borrowers and lenders alike.
A Modern Solution
A virtual collector can outperform your staff and deliver better results at a fraction of the cost. An AI-Powered virtual platform for debt collection and management can function without supervision and handle the entire collection lifecycle smoothly. What sets a Virtual Collector apart is its capability to handle an unlimited workload, function flawlessly in your absence, and help you drastically reduce extra expenses.
How can get your virtual collector?
TotalCollectR – Our virtual debt collector and negotiator is designed to complement and enhance your existing process. Through Total CollectR, you can connect with customers rather than merely attempting to collect from them. TotalCollectR is the gateway to hassle-free debt collection powered by next-generation AI.
Five reasons why you need Total CollectR?
- Total CollectR puts the customer in control of the collection process. The idea is to make customers feel empowered to resolve their accounts. Our platform provides alternative communication channels for your customers of preference at the right time.
- TotalCollectR provides the correct options to the right customers. Our platform is known for its accessibility. It is easy for customers to resolve their past due balances. TotalCollectR. Our platform keeps things simple instead of adding complexity to the collection process.
- TotalCollectR can communicate in more than seven languages (with room for more). It can connect with your customers in the language they speak. We welcome you to a collection process devoid of communication gaps.
- We know that customers do not want to provide payment information over the phone, especially if your phone number appears as a “Scam Likely” on their Caller ID. Total CollectR offers our customers a secure outlet to resolve their balances.
- The customer can manage their account, connect with lenders, and arrange payment on their terms. TotalCollectR is the one-stop shop for all your collection needs.
Get it now!
Resolving a collection account using traditional methods is costly for both the customer and the debt collector. TotalCollectR is a modern solution that redefines the debt collection process. Our solution is capable of delivering maximum results at minimum expense. Visit the Total CollectR website to learn more or if you would like a demo of our digital solution, click here.