If you’ve overspent on the big day it’s not the end of the world.
Weddings are not cheap. The average event will make a large dent in even the most carefully compiled savings pot. For many of us, covering the cost means looking elsewhere for help, whether that’s borrowing from friends or family or turning to loans or credit cards. So, once you’ve had the perfect wedding day, how do you pay off all the wedding debt?
Keep track of the totals
Wedding debt, like any other debt, is much easier to deal with if you know how much you owe. So, if you don’t already have a clear idea of what your repayment target is then working that out is going to be the first step. Make a note of the different people or lenders that you’ve borrowed from, how much you owe each one, what the repayment terms are and what interest rates are being applied.
Start with the most expensive debt
Approach repaying your wedding debt practically and start with the loan or outstanding amount that is costing you the most. This could be a bill from the wedding that you haven’t paid yet, with interest about to start accruing. Perhaps the most expensive debt is a guarantor loan– or maybe you’re about to run out of time on a 0% credit card deal. Use the information you’ve compiled on what you owe to identify where to start.
You don’t need to have terrible, super-frugal year after your wedding trying to repay everything in one go – that’s most definitely not a good way to start married life. Instead set yourself realistic monthly repayment targets that work with your income and other outgoings. If you set repayments too high then there’s always the risk that you might miss the payment so choose to repay what you can afford.
No one ever said that repaying wedding debt was going to be fun. However, sticking to what you decide is the only way you’ll get to the finish line and free up your finances for whatever you do next as a married couple. Set up repayments so that they come out of your account the day after you’re paid. Don’t give yourself an opportunity to spend the money on something else – your priority is to pay off your debt. Give yourself a goal for the end of the repayments, such as a holiday or week-end away. When your discipline starts to waver remind yourself of what you can enjoy once you’ve paid this off.
- Start with a clear idea of what you owe, to whom and what the interest is
- Set realistic repayments that still allow you to live your life
- Work through the debts, starting with the most expensive
- Don’t give up and don’t get distracted – set yourself new goals to stay disciplined and look back at your wedding photos and memories to remind yourself why it was all worth it.