How to pay off wedding debt

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A wedding is a joyous event meant to celebrate a couple’s love and commitment to one another. But once the big day ends, the marriage begins. And for many newly married couples, it can start with a pile of debt from financing that celebration. A 2024 survey by U.S. News found that 56 percent of newlyweds went into debt for their wedding, many by swiping their credit cards, using a wedding loan or borrowing money from loved ones.

Starting a new life together with debt can cause stress and disagreements and hinder other life goals, like traveling, buying a home or building savings. By dealing with wedding debt quickly, couples can reduce feelings of frustration, build a healthier and more robust foundation for their marriage and meet their long-term goals faster.

4 strategies for paying off wedding debt

There are many ways to pay off debt, but both parties need to do the work. Review your options together to find the best solution for your financial goals. Work together on your budget and remain transparent and committed to the plan as you pay off your wedding debt together.

1. Use wedding gifts

Wedding guests often gift newlyweds money to help them start their new lives together on the right financial foot. Monetary gifts can be used toward paying off debt from the wedding. While the gift amounts will differ based on your guests’ financial situation, some wedding experts recommend guests give anywhere from $50 to $200, depending on their relationship with the couple.

Before putting the money toward your debt, talk about all the ways you could use the money and make sure you both agree to use it for paying down your loan.

2. Apply the debt snowball or avalanche method

The debt snowball and avalanche methods are popular strategies for a debt payoff plan. The snowball method involves putting extra money toward paying off the smallest debt first while making minimum payments toward the rest of your debt, then targeting the next lowest debt until all debts are paid off. The avalanche method prioritizes putting extra money toward the debt with the highest interest rate first.

Both strategies can help you pay off debt faster and have their benefits. The debt snowball provides small wins that can keep you motivated, while the debt avalanche helps you save more money in the overall interest you’ll pay. To choose the best strategy, list your debts, along with their outstanding balances, interest rates and monthly minimums.

If much of your debt has similar interest rates — or you need small wins to stay motivated — the snowball method may be a good choice. If you have debts at different or very high rates, the avalanche method may be a better approach. When reviewing all your debts and payments, a debt paydown calculator can help show you all of your debt information and payoff dates based on where you make additional payments.

3. Consider a balance transfer card

A balance transfer credit card is a financial tool that allows you to transfer high-interest credit card balances to a new account with a 0 percent introductory period. This can be a strategic way to manage and pay off wedding debt, as it helps you save on interest charges and potentially pay down the principal faster.

When utilizing a balance transfer card to pay off wedding debt, it’s essential to have a repayment plan in place to pay off any outstanding balance before the 0 percent introductory period ends. That way, you’ll maximize your savings and avoid paying ordinary credit card interest, which is typically more than 20 percent.

4. Explore debt consolidation loans

A debt consolidation loan is a personal loan that allows you to combine multiple loans into one account with one interest rate. These types of loans usually have lower interest rates than credit cards and require only one monthly payment, which helps simplify your debt management. Some lenders may even offer the convenience of paying your creditors directly, which further streamlines the process.

To get a personal loan and consolidate your debt, you’ll need to apply with a bank, credit union or online lender that offers these types of loans. Determine how much to borrow by adding up the total debt you’d like to consolidate and review your credit to make sure you meet the lender’s minimum credit score requirements.

If you need to get a bad credit loan, make sure the interest rate is low enough that it still makes sense to consolidate your loans. Compare lenders to find the best rate and terms for your goals and apply. Most lenders can approve your loan and deliver your funds within a few days.

Optimizing your finances to pay off wedding loans

Once the wedding is over and you’ve settled into married life, look for ways to save and earn extra, so you can put more money toward your debt payment.

• Create a household budget: Whether you’re combining your finances or not, it’s important to agree upon your household spending. Work together to decide how much you’ll spend on housing, food, entertainment and more each month. Be open about how much money you’ll need to go toward your separate debts as well as combined debts, like your wedding debts.

• Consolidate accounts: Consolidating your bank accounts and insurance policies could lead to savings through combined discounts or reduced fees.

• Review subscriptions and memberships: As a newly married couple, you may have duplicate subscriptions or memberships, such as gym memberships or streaming services. Review these together and cancel any that are redundant or not being used. This can lead to significant monthly savings.

• Sell wedding items: Help others save on their wedding by selling leftover wedding items, like your decorations, jewelry and other accessories or your wedding dress. Not only can you recoup some of those expenses, but you can clear up some space in your home, too.

• Sell duplicate items: If you lived separately before getting married, you’ll likely have duplicate furniture, linens and appliances that you can sell online or at a yard sale. Again, this allows you to recoup some costs and clear some space.

• Expand your income: Find ways to make extra income, like asking for a raise or taking on a side hustle. Put any extra money you earn toward your wedding debt to pay it off faster.

• Consider windfalls: If you come into an unexpected sum of money, like an inheritance, bonus or tax refund, put the money toward paying down your debt.

Bottom Line

Paying off wedding debt may be one of the first challenges you take on as a married couple and, luckily, there are financial tools available to help you conquer it together. Use the resources you have on hand, including monetary gifts, repayment strategies and debt consolidation loans, and find ways to put extra money toward the loan, like selling items, working a side hustle or combining accounts to save a little extra. Build a strong foundation by doing the work together, committing to the plan and using open communication.