Money & Life! How to manage wedding debt? Credit card? Loan? What if there were some unexpected costs that came up that to had to pay with your credit card? Did you take out a loan for your wedding?
We want to start by saying that not all debts are created equal. Every couple knows their strategy and circumstance better than anyone else. This is why this guide is to share with you option on how you can approach wedding debt and you can pick which ones apply to you best. Your wedding, your rules.
- Determine the debt and interest
- Find an effective debt repayment method
- Adjust other expenses
- Build positive spending habits as a couple
- Treat yourself
Since your wedding is a day when no one wants to compromise anything. Every couple dreams of having a large celebration with all family and friends invited. But the wedding preparation does come with a price tag.
There are many things to spend money on from wedding venue and food to wedding decor and outfits. Your wedding budget might have worked, but what if there were some unexpected things that came up that you had to put on your credit card?
Once the big day is over and you have bid goodbye to your guests, it’s time for you and your partner to think about the wedding debt and how to manage it.
For the most part, managing wedding debt is not after the wedding, it should be done before and while planning your wedding. This is why we always suggest adding a 15-20% extra padding into your budget for “extra” or “just in case”. This will help manage surprise expenses.
Assuming that you have already planned on paying for your wedding and many aspects of your wedding have already been paid for, but of course, there will always be some unexpected surprises that you might have to deal with and pay for.
Before we proceed with sharing tips on how to manage those extra payments and wedding debt, we wanted to note that after your wedding, take the time to enjoy and slow down before jumping into looking at the numbers. You just got married! Enjoy the time together and when you are ready to jump into money talks, here are tips on how to manage and approach paying the wedding debt.
1. Determine the debt and interest
Check the total amount that you owe. From there, you can call the bank and create a payment plan with them.
Speak to the rep at the credit card company if they can put you on a 6-month no interest, fixed monthly repayment plan. This usually helps you pay just the principal amount without the interest.
If the credit card that you put the debt on initially was not able to provide you with a payment plan, if you have other credit cards, call them and see what they can do for you, and if they are able to help you with payment plans, move the balance over so it will not accrue high interest.
2. Find an effective debt repayment method
Say you have successfully made a payment plan arrangement with the credit card company. Try and pay more than what you have initially agreed upon.
If you can, pay the actual agreed amount on the day you agreed to. However, if you have extra on some days, make extra payments to help lower the amount.
There are many different ways you can manage your wedding debt. Decide the repayment method depending on how much you owe and for how long.
Most people prefer to repay their wedding debts in monthly installments. Create a new monthly budget and incorporate this repayment amount. When you add this to your budget, you can also see where you can adjust your current spending habit to tackle this debt and get rid of it altogether.
3. Adjust other expenses
Another way how to manage wedding debt is to adjust other expenses. Sure it is easy to say to cut down on your daily Starbucks. Or your lunch out. But really, we get it. You still have to survive your day, and these things help us get through tough days at work.
Instead of cutting them off completely, why not try to adjust them. For example, instead of eating out every day, eat out 2-3 times a week. Same with your Starbucks. If you get Starbucks twice during the day, try cutting it down to once a day. These might not seem like significant changes, but they will help you have extra money to pay off your debt without completely sacrificing your daily sanity.
4. Build positive spending habits as a couple
Save money but make it fun! Plan meals together and go grocery shopping for those days when you no longer plan to eat out.
This is a great way to jump-start your wedding debt repayment and get your first year of marriage on the right foot by coming up with solutions together!
Not to mention, these are also great date ideas and saving strategies that will be beneficial to the marriage if you decide to keep up with them!
5. Treat yourself
No. We don’t mean to go on a shopping spree. But after every month, see how much you have paid your wedding debt. If you paid more than you budgeted for, celebrate!
This can be a small treat, like buying a better bottle of wine this time around. Or trying out a new restaurant but only eating dessert! Not a full meal, but just dessert – a literal treat!
When you check your progress and treat yourself, you will be more motivated to come up with ways to figure out how to pay your wedding debt (or any debt really!) faster.
Keep you and your partner sane and happy throughout the wedding debt repayment period. This is not to say that debt repayment is not your priority, sure it is essential, but your relationship, especially during the first year of adjustment, is as important as well.
These things help you have a happy marriage and improve your relationship with your partner.
There you are lovelies! How To Manage Wedding Debt!