Help Managing Debt and Funding a Wedding

Mondy

I am looking to get married but have quite a lot of outstanding debt spread across 3 credit cards and I am trying to think of a managable plan moving forward. I currently have just under 15k of debt on credit cards which is broken down as follows:

MBNA - £9,500 (0% interest)
Tesco - £2,500 (0% interest)
Halifax - £3000

I have another2 credit cards on which the balance is zero'd, a Barclycard with a max of £10,500 and an M&S with a max of £5000. I did initially think I could use the Barclycard ti finance my wedding and the focus on paying them all off. I have also considered a oan from the bank but hate the idea of paying tis off over such a long period of time.

We are looking to keep the cost of the wedding to a max of 10k which is why I was condiering using the Barclycard but it has a high interest rate.

Ideally I need advice on how to best get my debt in a managable order so that I can focus on to large lumps of money to pay off. With my current income I only have around £300 disposable cash after bill and everything to play with. I am planning on putting this towards the cards moving forward.

Can anyone recommend by best options?

Thanks

pjcox2005

Without sounding rude, but I'd suggest delaying or reducing the cost of the wedding even if that means compromising on plans.

You say you have £300 a month to pay off debt, so already it will take over 4 years to pay off the £15,000 owed (assuming it's always 0% interest), do you really want to add 3 years on top of that for the wedding?

Alternative would be to perhaps give yourself a year of trying to lower living costs (post an SOA), increase income and pay off debt. If you manage that then you'll be in a better place to afford the wedding you would like.

Mojisola

Mondy wrote: »

We are looking to keep the cost of the wedding to a max of 10k which is why I was condiering using the Barclycard but it has a high interest rate.

Get married very cheaply at a Register Office with a couple of witnesses.

Cut all your costs down and repay your debts. Once they are paid off, put that money into savings and have a big do for your 10th wedding anniversary.

MrsTinks

I had a wedding whilst in debt and whilst I should have done the super low cost thing then I wanted a wedding dang it

So let me start by saying: do it cheaper!

Seriously £10k is a lot! We were lucky that my dad gave us £5k as a gift (it was not expected!) and that was pretty much my budget.

You say YOU have £300 a month to over pay with, but what about your partner? Surely both of you will want to pay for this wedding?

Have a sit down, think about EXACTLY what you want for the day, what you can't POSSIBLY do without and look at the numbers. Forget stupid things like favours (seriously - at most plonk a wrapped chocolate on their plate or something!), personalized invites (no-one will judge you for buying standard ones, no-one will even remember them the week after the wedding!), save the date magnets (the only people who still have the ones my friends sent out are themselves and her parents...), expensive cars (ask around - bet you have a friend with a posh looking car or older relative who'd not mind being the driver for the day... we've used our cars for a friends wedding to make sure the bride arrived in style) etc.

There is a whole board dedicated to special occasions and weddings and a good MSE guide too.

Start a new thread with your SOA and let's see where we can cut back and get you over paying on those debts

Here's the MSE Wedding Guide

And the Weddings sub forum

Mondy

MrsTinks wrote: »

I had a wedding whilst in debt and whilst I should have done the super low cost thing then I wanted a wedding dang it

So let me start by saying: do it cheaper!

Seriously £10k is a lot! We were lucky that my dad gave us £5k as a gift (it was not expected!) and that was pretty much my budget.

You say YOU have £300 a month to over pay with, but what about your partner? Surely both of you will want to pay for this wedding?

Have a sit down, think about EXACTLY what you want for the day, what you can't POSSIBLY do without and look at the numbers. Forget stupid things like favours (seriously - at most plonk a wrapped chocolate on their plate or something!), personalized invites (no-one will judge you for buying standard ones, no-one will even remember them the week after the wedding!), save the date magnets (the only people who still have the ones my friends sent out are themselves and her parents...), expensive cars (ask around - bet you have a friend with a posh looking car or older relative who'd not mind being the driver for the day... we've used our cars for a friends wedding to make sure the bride arrived in style) etc.

There is a whole board dedicated to special occasions and weddings and a good MSE guide too.

Start a new thread with your SOA and let's see where we can cut back and get you over paying on those debts

Here's the MSE Wedding Guide

And the Weddings sub forum

Well to be honest we want a very low key wedding, ideally just the 2 of us and in the woods would be ideal. Then a 2 week honeymoon to an all inclusive place in Maldives would be where most of the money would go. This is why was thinking I could shove it all on a CC then get some sort of re-payment plan in place.

enthusiasticsaver

I think if you are struggling with debt already and only £300 disposable income then paying £10k for a wedding is daft. I would suggest you focus on clearing the debt and then saving for a wedding or seriously downscale your plans to registry office and small reception. Even if the credit cards are on 0% the rate will increase at some point if you do not pay them off by then.

Just as a reality check with just £300 per month to repay the debt it will take you over 4 years just to clear your existing debt let alone if you put your wedding on to a credit card as well. This is assuming the debt remains at 0% which obviously it wont forever. Do you really still want to be paying for your wedding in 7 or 8 years time?

What is your fiances financial position? Are you looking to stump up £5k each? Maybe a second job with all income from that going towards wedding?

Mondy

My cards are on 0% just now but I was under the impression when the 0% period comes to an end I can balance transfer to a new long term 0% card?

If I was to focus on clearing my debt should I be closing down my 2 cards which are now clear which have a potential of spending 15k on them. I read somewhere that closing down cards can have a negative impact on your credit rating?

And finally is my debt at a level where I should be considering a DMP from Step Change. Does this seriously affect my credit rating and prevent me from getting a credit card in future?

nkkingston

From what you've said, you could get that £10k down to £2k or £3k if you're genuinely focused on the honeymoon first and foremost. However, that you've reached that figure in the first place makes me think that one of you wants something a little more traditional, and is working back from there.

Instead of figuring out how much more debt you'll accrue, work out what kind of wedding and honeymoon you could afford if you dropped your current debt repayments to minimum and saved up towards it. £300 a month is £3600 by the end of the year, plus whatever your partner contributes, minus whatever your minimum payments are.

Start with a guest list - the number of people has the biggest impact on the unavoidable costs. Decide if you want your guests at the legal ceremony (which has to be held in a licensed venue; you can't get married outside here like you can in America), or whether you just want them for the reception (potentially with a blessing ceremony so they don't feel they've missed out). Registry office is usually the cheapest for the legals, but if you regularly attend a church/temple/mosque/etc you may be able to get married there for free.

Outdoors seems cheap, but you need to think about what you'll do if it rains, whether it's got toilets, how you'll get food and drink there, how you'll get the washing up home again... If you have friends who live near the woods, that can solve a lot of that, or a cheap campsite. Picnic areas are a risk if they don't have any covered seating. You do have options, but you need to do a lot more planning and prep, and keep a close eye on the costs; you might not be paying for chair covers, but if you start purchasing extra pretty picnic blankets to make it feel special you're still spending money that could have gone towards your debt.

Other cheap reception options include having it at someone's house, having it at a restaurant, having it at a community hall and bringing your own food. Traditional venues, like hotels, are often cheaper midweek in winter, so if you end up going for something like that ask them about their off peak prices. The budget hotels all inclusive offers listed on the MSE page are incredibly good value.

Clothing wise, head to high street stores rather than boutiques and find something you can wear again. Cake wise, get it from a supermarket or make it yourself. Self catering food and drink usually works out cheaper, but bear in mind you may need to hire crockery and cutlery (and tables and chairs) depending on your venue.

If your focus is on the honeymoon, consider picking your wedding date based around when the honeymoon is cheapest (barring monsoon season etc, though if you're not planning to leave the hotel room...). If you don't need physical stuff, I'd recommend setting up a honeymoon registry. Etiquette is not to ask guests to pay for stuff you would anyway, like plane tickets, but consider items like a romantic dinner in the hotel restaurant, champagne by the pool etc, and send them thank you notes with photos of the two of you enjoying their 'gift'. Honeymoon registries don't involve paying for the actual event (your guests don't ring the hotel and book dinner for you) but a cash value equivalent of, so if you're all inclusive you won't be paying to do extra things on top.

Grumpelstiltskin

Forget the Maldives, as you are in debt there will be nothing wrong with a few days in the forest in a log cabin.

MrsTinks

Well you can... assuming you can get one. Or assuming one of the cards you have cleared will give you a 0% offer. Never assume though - always plan for worst case.

I would leave your cards as they are for now personally - there is a fair chance that they might offer you a decent 0% transfer when your current ones come to an end if you haven't managed to pay them all off by then.

A DMP is only really suitable if you can't make inroads into your debt - you have money to throw at this after your commitments so a DMP wouldn't be suitable. You can after all meet your minimum repayments so why would you default on debts?

Should you end up not being able to afford your repayments then you would default on your debts and this will affect your credit file for 6 years - longer if any creditors subsequently seek a CCJ against you for the debt.

MrsTinks

Mondy wrote: »

Well to be honest we want a very low key wedding, ideally just the 2 of us and in the woods would be ideal. Then a 2 week honeymoon to an all inclusive place in Maldives would be where most of the money would go. This is why was thinking I could shove it all on a CC then get some sort of re-payment plan in place.

Low key is good - forget the excessive honeymoon in the Maldives - either save for it and get married when you can afford it OR get married now, have honeymoon in a few years time when... you can afford it. Don't shove a 2 week holiday on a card which you may end up repaying for 3 years or more!!!

I understand the desire for the Maldives - I do! I would have loved Bora Bora! I settled for Egypt (10 years ago) in a 5 star hotel paid for mainly in Tesco clubcard vouchers

Ultimately you will do what you want - but understand that you could be paying for those 2 weeks for 3 years or more, 3 years where you might not be able to move into a house, start a family, replace an ailing car, have other holidays... life is about choices. Personally I understand that you want it, I just think it's the wrong choice speaking from some level of experience...