Biggest day brings the biggest debts

Indebted bliss? Paul Moorhead warns of big spend
Indebted bliss? Paul Moorhead warns of big spend
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THE Royal wedding may have a final bill that runs into millions…but the happy couple won’t be left picking up the tab.

For many young people starting out in life together the biggest day of their life will also prove to be the most expensive.

And once the honeymoon is over they will be left facing the problem of how to pay - unlike the future King and Queen of England

“The cost of the average wedding has now risen to something like £20,000 which is an enormous debt for young people to be taking on,” says South Yorkshire insolvency expert Paul Moorhead, of insolvency practice Moorhead Savage.

“If there’s one thing likely to shatter romantic dreams it’s going to be waking up to the sort of credit card bill you simply don’t have the money to pay for.

“This is what we call unplanned spending, which is where spending gets out of control and where, on top of the existing debt that many young people have, they begin to run up even more expense.”

The excitement of the big day for William and Kate, however, is likely to encourage other brides and grooms to think big rather than affordable.

“I think it’s inevitable that people will watch the Royal wedding and get caught up in the glamour of the whole thing,” Paul says. “And that’s when the problems will begin.

“What I have always said is that debt is only a problem when in becomes unaffordable and although a certain amount of debt may be unavoidable in the modern world, the danger is not properly budgeting for it.

“So if young people are starting life with an extra amount of debt - and don’t forget that many will have the existing burden of their student loans still to pay for - they need to be very careful to budget properly, especially if they are thinking of starting a family, which is the biggest expense that couples always underestimate.”

If the debt does begin to spiral out of control, though, Paul says that the most important thing is to seek expert advice as soon as possible.

“Don’t just think that this is a problem that will go away.

“The sooner you seek help, the sooner the problem of resolving the crisis can begin.”