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Struggling With Wedding Debt? Check Out These Money Tips

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Getting married is a magical thing and a once-in-a-lifetime experience. It’s only natural that you want to make it as special as possible. With that said, getting into wedding debt is surprisingly easy and it can be very difficult to get out of it. When you consider that the average budget for a wedding ceremony and reception is around $28,385, it’s easy to see why wedding debt is such a big deal.

If you’re planning a wedding and want to stay out of debt or at least ensure your debt is as low as possible, this is just the article you need. Let’s look at a few ideas on how to ensure that your wedding is awesome without costing an absolute fortune.

Plan Your Budget Carefully

Planning everything out carefully is necessary if you want to save money. Cutting down on things like gifts for guests and keeping the menu to a minimum are all things you must keep in mind when planning the wedding budget. Your wedding can be amazing without a five-course meal or freebies your guests will forget about anyway.

Opt for Monetary Wedding Gifts

Let’s say you have 20 guests at your wedding, and each guest gives $100 dollars instead of wedding gifts. That would give you a total of $2,000 that you didn’t have before, and you can use that cash to pay off some debts.

Rent a Wedding Dress

Finding the perfect dress is as difficult as it’s expensive, and renting one is so much cheaper. You’re only going to wear the dress for one day, so you might as well save as much as possible on it. It’s nice to think that you want one you can pass down to your children, but who says they’ll have the same taste as you?

Keep the Wedding Intimate

Only invite your closest friends and family to your wedding. Unnecessary guests mean you’ll have unnecessary costs. Also, fewer people mean less food and drinks, so it’s okay not inviting the random old lady that held you once when you were a baby. Seriously, if a person isn’t someone you truly want to spend your special day with, you’re not obligated to invite them, even if they’re family

Have an Off-Season Wedding

Back in 2012, the average wedding reception cost about $13,106, so you know it’s really expensive these days. With that in mind, why not have an off-season wedding? Having a winter wedding will not only be cheaper and more gorgeous, but it also makes it feel more unique and special. Spring is also slightly off-season, so if a fairycore spring wedding sounds more like your style, go for it.

Keep Things Local

Keeping it local might sound boring, but all the money you’re saving can go to making it as beautiful as possible right where you are. Since 35% of weddings are outdoor occasions these days, you don’t have to hire a big indoor venue—do things outside!

Cut Expenses

This may be easier said than done, but it’s not impossible. Temporarily spending a little less on things like takeaways and non-essential expenses will give you a little extra to spend on the wedding. Also, canceling some subscriptions for a short while might lessen the debt you have to pay.

Get Professional Help

Sometimes, it’s still difficult to pay for everything even after trying all the methods and options. If you get to the point where it feels like nothing is helping, getting professional help from someone like a financial planner is the best way to go. Financial planners will guide you through your debt and help you return to financial stability.

Wedding planning is stressful enough without worrying about debt, but if you follow the advice shared here, you’re off to a fantastic start. The bouquet is in your hands now—go ahead and plan the wedding of your dreams without paying an arm and a leg for it!

 

Helpful Tips for Paying off Your Mortgage Early

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Many people dream of becoming homeowners. However, buying a house is a capital-intensive process. Luckily, you can take out a mortgage, which allows you to own the home as you pay off the loan periodically. If you already have the loan financing, it’s prudent to clear it early to avoid the stress of owing money. It also saves you money in the long run. The tips below will help you pay off your mortgage earlier.

Opt For Biweekly Payments

Most mortgage loan repayments are scheduled monthly, but you don’t have to wait until the end of the month to repay the loan financing. Ideally, you can split them into biweekly payments. This means you’ll have made 24 full monthly payments in a year, which cuts the repayment schedule by half. Check if your lenders accept biweekly payment plans because some will charge you a fee.

Pay an Extra Amount Every Month

Consider paying extra every month. The extra money adds up and covers some months, meaning you reduce the repayment period. In turn, you reduce the monthly interest, saving in the long run. If you live in a rental house, consider moving to a cheaper one and channel the amount you save to a mortgage. Approximately a third of renters move yearly, so this lifestyle change is clearly very common.

Commit To Making Extra Yearly Payments

At the end of the year, you might get some extra money like end-of-year bonuses, tax refunds, inheritance, or a sale of a valuable item. You can put this extra-earned money to good use by making lump sum payments. It will reduce your interest and your loan repayment period. Take time to buy items like jewelry, find the best deals, and use the saved amount to repay the mortgage. 35% of couples spend less than three months researching what ring they want and where to buy before an engagement.

Refinance Your Mortgage Loan to a Shorter Term

Mortgage rates have increased over time due to inflation. Consider refinancing your loan with shorter payment periods. While the monthly payment amount will slightly increase, loan financing attracts a lower interest rate.

Consider Recasting Your Loan

Mortgage recasting is also another way to help you pay your loan faster. Unlike refinancing, the existing loan terms remain the same. Essentially, you make a lump sum payment towards the principal balance, and the lender will re-amortize the loan to reflect your new balance. Recasting helps save interest on the loan and reduce your monthly payment. Note that your lender might charge you a recasting fee.

Consider Getting a Loan Modification

We all go through difficult moments. If you aren’t in a position to pay for your mortgage, consider a loan modification. Your lender may lower your interest rate, enabling you to pay your loan faster. This arrangement is meant for borrowers with financial hardships due to unemployment, disability, or loss of income. Be aware that this may have consequences on your credit depending on how your lender reports it to the credit agencies.

Consider Downsizing Your Home

Downsizing can be drastic, but it’s prudent if you want to pay your mortgage faster. Consider trading your home for a less expensive one. You will reduce your mortgage debt and might have extra money to pay off other debts. If you are considering selling your house, making improvements like a new painting will boost the curb appeal and attract more buyers. Blue-gray is the most popular color for a house exterior.

Paying your mortgage earlier reduces the interest rate payable and gives you peace of mind. There are numerous ways to achieve this goal, including paying a little more monthly. It’s the small actions that count.