Have you got the wedding day blues because your debt is keeping you from being able to have the kind of wedding you always dreamed of for yourself or your child? If so, you are not alone. America is a debtor nation filled with citizens who use debt to obtain and support a certain lifestyle. It's a common occurrence when a major life event comes along and the money is not there to enjoy it the way intended.
By the Numbers
Numbers reported by the Federal Reserve as of May 15 show Americans were carrying total debt of $11.91 trillion and growing. While much of that debt would be deemed necessary ($8.2 trillion for mortgages, $1.8 trillion for student loans), there are some components such as credit card debt of $883.4 billion that has been accumulated, which tends to create a majority of the debt problems in America. If the average American family is using more than 14% of their disposable income to service their consumer debt, it's clear that saving for extraordinary and special expenses could be problematic.
Saving for the Wedding
If your debt is high enough that it is preventing you from saving for a big wedding, you are most likely in a situation where borrowing for the wedding costs is a bad idea. In fact, you might be in a position where learning to live your life on a cash basis is a good idea. Since you are facing a huge task of trying to manage excessive consumer debt while trying to save enough money for a big wedding, you are probably feeling the stress as all eyes fall on you. Yours or your child's wedding day comes but once in a lifetime (hopefully). If you feel that pressure, you need to consider ways to get out of debt so you can create enough cash flow to allow you to start saving now.
How to Get Out of Debt
Before you start worrying about how to get out of debt, you might want to consider using some sound debt management techniques to help keep you from incurring more debt. With a more fiscal approach to your finances in place, you can consider the following methods of eliminating debt.
Earning More Income - If you have the time and initiative, you can always find a way to start a little side business or work some overtime in order to raise more extra income. That income should be used to accelerate your debt payments, freeing you up to start saving for the wedding.
Debt Consolidation - If it's just a matter of cash flow, a debt consolidation loan could be an interesting option. By combining as much of your debt as possible into one loan, you should be able to secure favorable terms (lower interest rate, lower monthly payment), which will free up some extra cash for savings on a monthly basis.
Debt Settlement - Perhaps your debt has reached unmanageable levels. If so, debt settlement with the help of a reputable debt management company could be your last option before considering bankruptcy. If the debt management company can successfully negotiate the lowering of your debt balances plus secure favorable terms, you should be able to service the remaining debt while putting some away for the big day.
If your debt is preventing you from enjoying the important things in life, it might be time to schedule an appointment with one of our professional debt counselors here at Rescue One Financial. With our guidance, you should be able to find a viable option for eliminating your debt issues while allowing yourself the opportunity to start planing and saving for events that really matter.