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When you enter into a marriage, you expect your spouse to be faithful. But sometimes, a different type of infidelity — financial — can rear its ugly head.
That’s what happened to Cathy from Dallas, Texas, who recently called into The Ramsey Show seeking urgent financial advice.
Cathy revealed to co-hosts Ken Coleman and Jade Warshaw that she suspects her to-be ex-husband has racked up close to $1 million in debt behind her back — and she’s probably on the hook for half of it.
Here is what Coleman and Warshaw had to say.
Money can be a huge driver of marital strife, especially when one spouse keeps secrets.
A 2021 survey by the National Endowment for Financial Education found that 43% of people with combined finances in a relationship have committed financial infidelity.
For 39%, that meant hiding a purchase or bank statement from their partner. For 19%, it meant hiding cash. And for 16% of couples, financial infidelity ultimately led to divorce.
Cathy, meanwhile, learned that her husband hadn’t paid income taxes for three-years and owed $80,000 in credit card debt. The kicker? Cathy and her soon-to-be ex have a $550,000 mortgage for an office building that she co-signed on.
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Even worse, Cathy doesn’t have a record of how that money was spent.
“I feel like an idiot,” Cathy said.
Coleman thinks Cathy owes at least $250,000.
If, like Cathy, you’re struggling with substantial debt, there are a few things you can do. One option is tapping into your home’s equity through a Home Equity Line of Credit (HELOC), especially if you’ve made consistent mortgage payments.
A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.
