Mar 27, 2013

How to Avoid Sliding into Debt after an Expensive Honeymoon

Going on your honeymoon should be about spending quality time relaxing with your partner as you start your married life together. Nothing spoils the romance faster than a mountain of debt awaiting your arrival back home! It can be hard, but here are the best ways to avoid sliding into debt after an expensive and luxurious honeymoon.

Stick to Your Budget

This is one of the toughest yet most vital ways that you can ensure your honeymoon doesn’t turn into a financial horror story. Coming home to increasing debts is no way to remember your special time together, so draw up an accurate budget and stick to it! Allocate your funds clearly between accommodation, meals, activities and shopping so that you always know how much you have to spend. Don’t let yourselves get carried away, as the guilt of overspending is guaranteed to follow you home, and can put disastrous pressure on your relationship.

Organise Your Bills Before You Leave

Some service providers and lenders will allow you to pay in advance when you are leaving on a holiday. Take advantage of this option for ultimate peace of mind on your honeymoon, where you can relax in the knowledge that everything is up to date. If pre-payment isn’t an option with the provider, many financial institutions will allow you to set up an advance payment to a specified biller? Talk to your bank to find out the full range of options available to you.

Consider Consolidation

Trying to keep track of your debt can be exhausting, with many couples having several credit cards, personal loans and a home loan on top of their normal bills and expenses to try and budget for. If you’re feeling like your debt could become out of control after your honeymoon, consider a debt consolidation loan. The way it works is that a debt consolidation company will give you a loan that covers all of your current unsecured debt.

This allows you to focus on paying off your debt with one monthly payment, often saving you hundreds of dollars when compared to your current repayments. In addition, the interest rate tends to be significantly lower than your existing loans and cards. With a consolidation loan, you will notice that it’s much easier to not only keep up with repayments, but make additional ones as well, which greatly increases your chances of becoming debt free sooner.

Save a Little Extra

It always helps to have that little bit extra in the bank just in case. There are a range of scenarios which could see your already expensive honeymoon become exorbitant, so being prepared for emergencies is essential. Having some spare savings will give you a buffer zone for the worst case scenario.

Don’t let your beautiful honeymoon drag you into insurmountable debt. Once you have strengthened your financial position and created a great budget, you can feel free to relax and enjoy your very special holiday with your partner. With these simple tips, you can ensure that expensive doesn’t become excessive, and that your honeymoon is one to remember for all of the right reasons.

About the Author: Emma Jane is a freelance finance writer and a frugal mom of two kids.

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