Debt a detriment to dating

Aussies with large amounts of debt may struggle to find love.

A Finder survey revealed that, on average, Aussies would refuse to date someone if their personal debt exceeded $59,758, excluding their mortgage.

One in four Aussies (24%) wouldn't tolerate debt of up to $1000 outside a mortgage, while 15% would be turned off if their love interest carried between $1000 and $5000 worth of debt.

Finder personal finance spokesperson Kate Brown said debt could be a major deal breaker in the modern dating world.

"Love and money don't always mix, especially when debt is involved,” Ms Brown said,

“It's hard enough to keep your own personal finances in check, let alone having to worry about someone else's.

IS BEING IN DEBT EVER A GOOD THING?

HOW YOUR CREDIT SCORE CAN IMPACT YOUR BORROWING POWER

FIVE FREE APPS TO HELP YOU SAVE MONEY

"The 'money talk' is best avoided on the first date but if things start heating up, it's important to have an open discussion about your finances, even if it's the last thing on your mind.

"You don't want your partner's debt to prevent you from eventually buying a home or getting ahead financially.”

Ms Browne said that debt doesn't necessarily spell disaster in a potential partner.

"For many Aussies who are out there dating, debt can be a red flag but some types of debt are better than others,” she said.

"A student loan is considered to be good debt because it can help an individual to get ahead in life. 

“You should also consider your partner's strategy for getting rid of debt. They may repay it in a matter of months with clever budgeting.

"That being said, you should try and steer clear of gambling debt, or a history of defaults.”

The most common forms of debt for Aussies include a mortgage (30%), credit card (27%), student loan (15%), personal loans (13%) and ‘buy now pay later’ (13%).

How your partner’s debt can affect you

  • Reduced chance of home loan approval if your partner has a history of debt or a poor credit score.
  • Limited access to joint finance such as a joint credit card or loan.
  • If your partner dies you may be held responsible for their secured debt if they've borrowed against your joint assets, like a car or home. 

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.