We have $5,000.00 in credit card debt with a wedding coming up. How should we manage our debt?

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We have $ 5,000 in total credit card debt on two different credit cards. We have been saving money on the side for the wedding and have a total of close to $ 6,000 in the bank. Should we pay off the credit cards with that money and then apply whatever our wedding costs (to compensate the 5,000 we would take out of the bank) on one or two credit cards with 0.0% apr for a year or so? I can provide more info if needed but I am trying to find a plan that my fiancée and I can agree on so I will need details on why a certain plan of action is better. Hope you guys can help!!
Okay I need to add some details. I am not worried about having a “big” wedding. We have already booked and paid deposits on everything for the wedding, which is in November. Our parents are helping us out, so my question has nothing to do with the wedding but how we should juggle the debt, if it is smart to pay it off (save from paying interest) or have money in the bank for the wedding. So I am looking for ideas on how to manage the debt not keep from getting into it.
Again, the wedding is in stone and we have to have the ceremony and reception. Our families are very large and we have been dating for 7 years. It is a time for celebration which in my opinion is being civilized. Please just read my question and answer if it is better to keep the credit card debt and pay off the wedding with cash or pay off the credit cards and pay off the wedding with credit cards that have no interest for a year or lower APR than the credit cards we have now.

6 Comments
  1. Reply
    Bret B
    June 26, 2011 at 12:38 pm

    start the marrige off as debt free as possible. have a smaller wedding!

  2. Reply
    Angel
    June 26, 2011 at 12:49 pm

    If I were you, I’d pay off the credit cards and then do a budget wedding, or take out a personal loan from a bank that has a fixed rate and a certain term length, that way you know that no matter what, at least it’ll be paid off in X amount of years (Usually 3 or 4). You can throw extra money at it to make it go away faster. Also, a fixed rate typically allows you to make a few late payments…They won’t get one late payment and automatically jack up your interest rate like credit cards would do. And then, if you have some emergency expense in the first few years of marriage, you have two credit cards with zero balances on them.

    Not to mention, you can get the bank loan in both your names and it goes towards both your credits and can boost your credit scores.

    It’s been my experience that any time you can eliminate “credit card” debt is good – They’re just fickle and tricky…Banks tend to cut a lot of BS out.

    Good luck – And congrats on your upcoming wedding!

  3. Reply
    Neley H
    June 26, 2011 at 1:24 pm

    I would do just that if left with no alternative. Pay off those credit cards and find another way to pay for the wedding.

    I actually have cc debt with 0% and am working to pay it off after i consolidated. I could pay it all off at once but figure, why? I would rather be earning interest on that money.

    One thing though—make darn sure you pay it off before the interest goes up and DO NOT put anything else on the card and DEFINETLY do not use it to GET CASH as the CC companies will charge you interest on the cash until AFTER you pay off the consolidated amount that is 0%. (Charging you high interest on this cash amount)

    I’m not a professional but had to research some of this on my own. Hopes this helps you.

    Suze Orman’s site has helped me tremendously; her advice could help you too…Good luck and Happy Wedding!

  4. Reply
    debnettlenote
    June 26, 2011 at 1:39 pm

    I would go to the bank and take out a small loan I mean the interest rate at a bank has got to be quite a bit lower than your credit cards or atleast ask the loan dept. it they have any ideas that’s what they are there for. . . (since you have an account there)

  5. Reply
    DaMan
    June 26, 2011 at 2:39 pm

    Boo, do yourself and your spouse the best favor in the world.

    Go and get married at the justice house and attack all of that debt with the love y’all have for one another.

    Any other way would simply be uncivilized and sheer folly.

  6. Reply
    Hima K
    June 26, 2011 at 2:59 pm

    I would suggest you to join a debt settlement company who will negotiate with your creditors and bring down your principal debt by around 30% to 70% depending on your credit cards.

    You can make affordable monthly payments and be out of debt within 3-36 months. There are no hidden costs and upfront fees associated with the monthly payment options.

    Check out this debt settlement company who has helped meout with the unsecured debt situation.

    http://www.debtfreeafterall.com

    Good Luck

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