For most couples, the time between getting engaged and celebrating the big day is a whirlwind filled with myriad details that need lots of personal attention: booking the wedding location, recruiting members of the wedding party, organizing the reception — the list goes on and on.
In all the excitement and activity, one thing that may get overlooked is discussing who is paying for everything and how it will be financed. The typical wedding costs between $20,000 and $25,000.
"Most people won't be paying for their weddings entirely with cash," said Maxine Sweet of Experian, a company that provides consumers with products and resources to help them understand, manage and protect their personal credit profiles. "Whether the bride and groom are paying for the wedding themselves, or their families are picking up the tab, chances are at least some of the wedding expenses will be put on a credit card."
There may be the need to spread the expense over time, or it could simply be because of the convenience of using credit for phone orders or remote contracts.
Figuring out how to pay for the wedding gives couples an opportunity to discuss their feelings toward money in general and more specifically, how they feel about using credit. These are issues that may not have come up previously, since each individual was handling their own money. Web sites like www.Experian.com give you quick and easy access to your credit report and credit score to learn what positive and negative factors are affecting your credit. Each of you should obtain a copy of your credit report and then spend scheduled time reviewing them with your spouse-to-be.
Check pertinent information such as your name, previous and current addresses, Social Security number and account details. If you find any inconsistencies in your report, you need to report them and correct the information. Once you've covered these basics, review your partner's credit report for clues on how they deal with money and credit.
For example, if your significant other has a history of late payments, which could indicate a problem managing money or that they're overextended. Or it could simply highlight a devil-may-care attitude toward paying interest and late fees.
Either way, it is important for both of you to agree on using and handling credit, because your access to new credit and to better interest rates very likely will be affected by your spouse's credit behavior and vice versa.
Before you justify using your credit cards to finance the perfect wedding, keep in mind that those pending balances could be with you for a long time. While you may not want to settle for a less expensive wedding gown, or a less exotic honeymoon trip, just remember it will be even more expensive when you tack on the interest charges that will add up before you pay it off. Have a definite plan for how and when all of it will be paid.
— ARA Content
