Irresponsible Spending by Family Members

Posted by: Henry B. | Dec 29,2007


Sometimes you do everything you can yourself to cut down your own credit card spending, but other people in your family don’t quite follow your lead.  This is probably the most common issue on the Married with Children blog: a husband and wife pair who do not have the same attitude towards credit and debt.  Credit cards can be a family affair – husband, wife, kids, even a sibling or in-law, though I seriously don’t recommend that.  It’s something like going into business with family members.  It’s been the cause of many long grudges.  

Obviously, you have some jurisdiction over your kids.  If they’re overspending on a card meant for emergencies, you can just take it away.  You don’t have quite the same jurisdiction over a husband or wife.  Take this scenario: you’re good with credit, but your wife makes more money than you do.  As a result, she feels like she’s earned the right to spend more, even if it means going into debt.  It’s a bit harder to argue your position, as making less money does potentially give you less authority.  On the other hand, debt is debt.  If she’s spending more than you both have in the bank then she’s not being financially responsible.  

If you’re the breadwinner and your wife is spending your paycheck via credit than you are more in the driver’s seat, but it’s not always an easy conversation to have.  It depends on how the funds are being used: is the person buying necessities or things that are totally unnecessary?  The latter case is more common.  If the person is making frivolous charges, you have to determine just why he or she is using the card so unwisely.  At times, shopping can be a real addiction, so banning all shopping isn’t going to cure the root problem.  

What it comes down to is that credit card debt isn’t good, even if you have a low interest rate.  Whatever the interest rate on the card, it’s going to cost you some amount of money above the initial cost of the item.  So you always have an arguing point in your favor: interest is expensive, it’s lost money.   If the spending really gets out of hand, you could cut up the cards or freeze the account, but good old-fashioned conversation about the issue should be your first recourse.  

Sponsored Resources Ads by Google