Planning to tie the knot? While you're busy picking out venues and creating guest lists, here’s something equally important that you must consider - your financial future together. Getting married isn't just about sharing your life - it's about building a strong financial foundation. Here are some practical tips that will help you and your partner start your marriage on solid financial ground.

Discuss Finances Openly

Remember how you and your partner talked about your favorite movies when you first met? Well, it's time to have the same open chat about money. Sit down together and talk about:

• How much you both earn and save each month
• Any loans or credit card bills you need to pay
• Your money habits (Are you a saver? A spender?)
• Your big dreams (like buying a house or traveling)

Smart Ways to Handle Debt Together

When you both know exactly what money is coming in and going out, it's much easier to work together and find solutions - whether you're dealing with loans, credit card bills, or any other money matters. It's like having a clear map before starting a journey - you'll know which path to take and how to get there together. Here’s how you can proceed:

When getting married, you should know about each other’s debts. Here's what you should do:

• List all your loans
• Make a plan to pay them off
• Avoid taking new loans unless absolutely necessary

List your loans

Start by creating a complete picture of your debts.

• Note down interest rates for each debt that you owe
• Track monthly payment amounts
• Mark payment due dates

Strategize

Smart debt management is about strategy:

• Focus on repaying high-interest debts first
• Consider debt consolidation for multiple high-interest loans
• Create a month-by-month repayment schedule
• Set realistic goals for becoming debt-free

Create a Payment Plan

Paying just the minimum amount on loans each month isn't the best way to go - it'll take forever! Paying extra when possible can make a big difference. Here are two simple ways to pay off debts faster:

The Quick-Win Method:

Focus on the smallest loan first. For example, you have three loans to pay off - one for ₹10,000, another for ₹50,000, and a third for ₹1 lakh. Put extra money towards that ₹10,000 loan while keeping up regular payments on the others. Once that small loan is paid off, take the money that was going towards it and add it to payments for the next smallest loan. This works well because seeing one loan disappear quickly is motivating!

The Money-Saving Method:

This approach focuses on saving money on interest charges. Look at all loans and spot the one with the highest interest rate - usually credit cards. Put any extra money towards that one first, even if it's a bigger loan. While it might take longer to completely pay off, it saves more money in the long run by tackling that high interest first.

It works like a snowball rolling down a hill - as each debt gets paid off, there's more money available to put towards the next one, making the process faster and faster.

Using Personal Loans Wisely

Sometimes you need extra money for important things. Personal loans can be a smart choice when you need funds for specific goals. They give you a clear repayment schedule and you know how much you have to pay every month. Here's when a personal loan might make sense:

Home Makeover:

Want to renovate your new home? A personal loan can help you create your dream space without emptying your savings.

Dream Vacation:

Planning a special honeymoon? Get a personal loan with easy monthly payments instead of maxing out your credit cards.

Emergency Expenses:

Sometimes life throws surprises. A personal loan can help you handle them without stress.

Build an Emergency Fund

Life can bring unexpected surprises that need quick money fixes. That's why you need an emergency fund - think of it as your financial safety net. Here's how to build one:

• Save enough to cover 6 months of expenses
• Put aside money from each paycheck, even if it's a small amount
• Keep this money in a separate, easily accessible savings account
• Use it only for real emergencies like medical bills or urgent repairs
• Start small but keep adding regularly until you reach your goal

Having an emergency fund means you won't need to dip into your savings when unexpected expenses pop up. It’s your safety net.

Secure Your Financial Future

Managing debts can feel overwhelming sometimes, like there's no way out. You may find it difficult to keep up with payments. That is the point when you will have to consider securing your financial future and protect your family's financial health. The key is to take action early rather than letting the problem grow bigger.

Here are some ways:

Avoid Joint Loans

Taking out joint loans needs careful thought. In a joint loan, both of you are responsible for the full amount – it’s not divided 50-50 between both of you. So, if your partner stops paying for any reason, you'll need to pay the entire amount.

Protect Your Credit Score

Your credit score is your financial report card - it needs to be protected. Being financially connected to someone (through joint accounts or loans) means their money habits can affect your credit score. If your partner has credit problems, it's better to keep your finances separate until their situation improves.

Financial stability is crucial for a newly married couple, and taking the right steps can help build a strong foundation. It’s not just about managing money but working together to achieve both personal and financial goals. HDB Financial Services' Personal Loan offers flexible financing options to support your journey—whether it's setting up a home, planning a dream vacation, or handling unexpected expenses. With smart financial planning and the right support, turning your dreams into reality becomes easier.