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The Cost Of That Wedding and Your Credit Rating
Posted: October, 2014
Your wedding is certainly a special day but can you really afford the cost. Will the cost of a big engagement ring, a big wedding and an expensive honeymoon cost you your credit rating in the long run.
Many who don't have parents who can cover the cost of that big wedding will often turn to their credit cards to fund a lot of the expenses. And, in so many cases those expenses are underestimated and quickly get out of hand. Since you can't really pull out because the tab is beginning to add up, couples often find themselves starting off their life together with huge debt.
This not only creates stress on the marriage it may eventually lead to poor credit ratings for both the bride and the groom, who are now husband and wife.
More Than The Cost of the Wedding
There is more to consider when getting married with regards to ones credit scores. One thing to really understand about your spouse before they become a spouse is their spending habits. Another thing is their ability to manage their credit and debt.
Although many people believe that having a serious discussion about finances and credit/debit management few actually get around to having that chat with each other.
Then after they are married they may find out that the other one already has bad credit and/or spends money like they were in responsible for our national debt.
Most people don't understand how joint credit works. Before getting married you have been your own self and your financial actions have only affected your credit rating; be that good or bad.
Once you have tied the knot and then begin to jointly borrow money to buy a car, purchase a home and co-sign with each other for other types of borrowing you become tied to each other through debt/credit as well as married through wedding vows.
Debt and payment activity begins to appear on both persons credit report and thereby affects the credit scores of both parties.
Estimate Those Wedding Expenses Closely
Think ahead about what the cost of those wedding items are really going to cost you in the long run. Most people think it is o.k. to spend around $5,000 for an engagement ring. If you are planning on putting that amount on your credit card then take time to figure out exactly how long it is going to take you to pay off that debt and how much interest you are going to pay over the life of the loan. Here is a site where you can use an online credit card repayment calculator to help you with determining how long it will take you to pay off that beautiful engagement ring.
Don't forget that you are soon going to want a new home of your own, not to mention new furniture and to entertain all your friends. Stop to think how all the debt you have charged from your wedding is going to impact these other wonderful things that you want to have.