You don’t have to live with wedding debt after the big day.
If you’ve run up debts to have your dream wedding then you’re not alone. Around a third of couples end up in debt to finance getting hitched. You might be regretting the credit cards or personal loans that you took out to finance your wedding day or you might not! – either way these are some simple tips to make it faster and easier to avoid the need to borrow money or to clear the debt that you have.
Now is the ideal time to start making some smart savings when it comes to spending. Could you give up your gym membership for six months and put that towards repaying the wedding debt? Could you reduce the number of premium brands that you buy so that you have more in the budget to reduce the debt from your big day? Go through all your monthly costs and find some expenses to eliminate – temporarily – until the debt is clear.
Pay off the most expensive debt first
Make a list of the debts that you have as a result of your wedding day and mark next to each one what the interest rate is, as well as whether there are any fees or charges to pay. Look for the debt that is costing you the most and put all your resources into paying that debt off first. So, high interest credit cards or doorstep cash loans or overdrafts with large fees are better prioritised over loans from family that don’t have any interest attached.
From asking for a pay rise or promotion at work, to taking on a second job, there are multiple ways to boost your income so that you can clear wedding debt more quickly. The gig economy provides lots of opportunities to generate small amounts of extra cash that are ideal for clearing wedding debt. You might be able to rent out a spare room or do some writing or graphic design work on a casual basis, for example, to help boost your income.
Sell what you don’t need
From clothes that you don’t wear, through to unwanted wedding gifts, take a look at everything you have that you don’t need and consider selling it. Auction sites like eBay are a simple way to put items up for sale or you could have a yard sale to get rid of everything in one go. Just remember to try and avoid putting gifts up for sale somewhere that the person who gave it to you could see it…
Refinance your debts
It often seems like anything with the word “wedding” attached to it tends to be more expensive and that can be the case with debts too. If you have an expensive wedding loan or you’re paying off the venue in installments with a high interest rate, it might be worth looking to refinance. This basically means finding a debt that costs less and using it to clear the more expensive debt. The outcome should be that you have less to repay overall and so are able to make the repayments more quickly and clear the debt faster.