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Scary, but true. The amount of student debt in the United States is approximately $1.5 trillion , about one-and-a-half times what Americans currently owe on their credit cards. People use credit cards for home repairs, to go on vacation, to buy groceries, to eat out at restaurants—and for just about any other expense you can think of. Yet, all of these purchases combined are dwarfed by our country’s total student loan debt.

Student loan debt is now the second biggest form of debt in our country, only behind mortgage loans—and the debt balance and its accompanying crisis continues to grow. In this post, we’ll delve into what impact this situation is having on the millennial generation (and other borrowers). We’ll also reverse engineer the reasons why this debt crisis is taking place and share strategies to help whittle down student loan debt, maybe even paying it off more quickly.

National Student Loan Debt and Its Impact on Borrowers

A recent study shows that millennials who have student debt have a net worth, on average, that’s 75% less than those without student debt (an average of $29,087, compared to $114,376 for those who are loan-free).

Students with loan debt also tend to have, when compared to their peers with no student loan debt:

•  about half as much money in the bank ($5,500 versus $10,180 )

•  approximately $19,000 less in their retirement accounts ($21,160 versus $39,905 )

•  larger mortgages—and on homes with less value

In short, financial wellness of millennials with student loan debt is clearly substandard, overall, when compared to others in their demographic without this debt. And, although people with college degrees tend to get higher-paying jobs, overall, the weight of the student debt that often accompanies it can drag down a person’s ability to gain financial wellness.

Here’s another statistic to consider: in an era when total student loan debt has surpassed total credit card debt, millennials with student loans also have more credit card debt.

•  55% of those with student loans also have credit card debt ; only 32% without education-related debt do.

•  Their average balance is $2,888 compared to $1,476 for graduates without student loan debt.

A Forbes article looks at the “disastrous domino effect” created by student debt, with one couple sharing how their debt is forcing them to “put their lives on hold year after year.” It’s had a negative impact on their marriage as they focus on paying down debt, and as they’re waiting to have children and buy a home. This debt has been a “huge burden and point of contention.”

Related: Will There Ever Be a Student Loan Bailout?

The borrower being quoted was a participant in a 50-state survey, Buried in Debt , of student loan debt and its impact on borrowers.

This report examines how the unrelenting stress of student debt can strain borrowers financially as well as emotionally. One of the participants shares how she regularly thinks about selling everything she owns to live in her car so she can put more money towards her debt.

Conclusions from the report include:

•  Nearly 90% of borrowers surveyed struggle to make payments.

•  The majority have less than $1,000 in their bank account.

•  6% of them have even had Social Security payments or wages garnished.

•  Nearly one third of them say their student loan bill is higher than their rent or mortgage payment.

•  65% say it’s higher than their entire monthly food budget.

More About the National Student Loan Debt Crisis

The amount of U.S. student loan debt continues to grow, increasing by 170% in just 10 years’ time . You read that right: over the last 10 years or so, the amount of student debt (in real dollars!) nearly tripled, which may lead people to believe we’re in the midst of a student loan bubble, similar to the subprime real estate bubble from a decade ago.

In June 2018, NASDAQ.com published Safehaven’s prediction that the student loan bubble is about to pop, and the article also shares how, earlier in 2018, the chairman of the Federal Reserve stated that this student loan increase could “slow down economic growth.”

Why this Debt is Growing

In part, the total student loan debt is growing because the costs of getting an education are still rising beyond the rate of inflation. In fact, over the last 10 years, the published costs of in-state tuition and fees at public universities increased at an average of 3.1% beyond the rate of inflation.

And, as long as the cost of attending college outpaces the cost of living, problems will continue for borrowers. Plus, the housing market crash of 2008 has also fed into today’s student loan debt crisis. That’s because some parents who’d planned to borrow against their homes’ equity to help their children attend college often couldn’t do so, post-2008. So, these students needed to take on debt of their own. More specifically, some economists suggest that, for every $1 drop in home equity loans, there has been an increase of 40 to 60 cents in student loans.

Even more alarming, analysis by The Brookings Institution estimates that, by 2023 (just a few short years away!), nearly 40% of student borrowers may default on their loans.

Paying Down Student Debt More Quickly

If possible, you could consider making an extra payment annually toward your loans’ principal balance. Can you do this twice a year? Every quarter? Paying extra toward your loans can help you get them paid off more quickly.

If that strategy is too much for your cash flow situation, you could always try figuring out how much you could increase your monthly payment beyond the minimum. Even if that doesn’t seem like an option right now, you can continue monitoring your financial situation and taking advantage of when you can pay more to your debt balance.

It can also help to create or review your monthly budget to see where you can cut back on expenses. For example:

•  How many paid apps, monthly subscriptions, and so forth do you have automatically deducted from a bank account or put on a credit card? Do you use them enough to justify their prices? There are even apps that help you can cancel unnecessary subscriptions and more.

•  When is the last time you shopped around to make sure you’re getting a good deal on your car insurance, enter’s insurance, or cell phone plan? How much could you save if you switched to a less expensive plan, and would the coverage still be as good?

•  What discretionary spending can you reasonably live without?

What would happen if you put those “found” dollars onto your student loan balance?

Refinancing Student Loan Debt with SoFi

If you’ve ever consolidated, say, balances from multiple credit cards into a personal loan, then you already know how much more convenient it can be to have one monthly payment. And, if you can get a lower rate on your new loan, you could also pay less interest over the life of the loan—depending on your repayment term.

The same is true when you refinance your student loans. It isn’t unusual for students to have taken out multiple loans for their education, and consolidating them into one loan with one monthly payment and a potentially lower interest rate might help them manage their repayment.

At SoFi, we allow you to refinance federal and private loans. We do, however, recommend that you explore the repayment benefits you can receive with federal loans, such as forgiveness programs or income-driven repayment plans, before refinancing. You’ll lose out on those benefits when you refinance with a private lender, so it’s important to be sure you won’t want to take advantage of any federal loan benefits either now or in the future.

When you refinance, you can opt for a fixed or variable loan and potentially select a more favorable loan term. If you are currently struggling to make your monthly student loan payments, it might make more sense to choose a longer term—though this can mean paying more interest over the life of the loan. Alternately, if you refinance to a shorter term, you could pay your loans off earlier, potentially paying less in interest.

In just two minutes, you can find your rate online and see if you qualify for SoFi student loan refinancing.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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If you’re facing student loan debt, adding those monthly payments into your budget can be overwhelming—and for some, it can be a serious struggle to meet the monthly minimum on loan payments.

Of course, to simply stop making payments is pretty much the worst thing you can do. Before you go that route, there are several other options to consider—and the sooner you move to get back on track, the better.

One of the more popular alternatives for federal student loans—chosen by thousands of borrowers each year—is to just press pause by requesting deferment or forbearance . But that postponement isn’t necessarily the best choice for everyone.

The appeal is obvious—both deferment and forbearance offer a chance to catch your breath and protect your credit when you feel as though you’re drowning in debt. A recent Brookings Institution analysis found that nearly 40% of borrowers could be in default on their student loans by 2023.

The main difference is that with a student loan deferment, you may not have to pay the interest that accrues on certain types of federal loans during the deferment period. With a forbearance, no matter what type of loan you have, eventually you’ll be responsible for paying the interest that accrues.

Either way, the relief is only temporary: Unless you’re deferring your student loans because you are going back to school, enrolled at least half-time, there are limits on how long you can postpone paying your federal student loans. And in the meantime, there could be consequences to your current and future finances.

For example, when the loan is in deferment or forbearance, interest may accumulate on your loan balance and capitalize on the principal at the end of the deferment or forbearance period. This could ultimately mean paying more in interest over the life of the loan, which could take away from money you’d rather put toward a car or house.

How Does Student Loan Deferment or Forbearance Affect Your Credit

A number of factors determine your FICO® credit score , including payment history, how much you owe, how long you’ve had your debts, what your credit mix looks like and how much new credit you’ve asked for lately. Each factor is weighted differently, with payment history being the most important, making up about 35% of your FICO Score.

Though your loan status will be noted on a credit report , putting your federal student loan into deferment or forbearance shouldn’t directly affect your credit score, unless you miss a payment before your deferral or forbearance is granted.

But your total debt load likely will be reflected on your credit report—and if you aren’t paying it down, it could keep your score lower than you’d like. Just as defaulting can crash your credit, making monthly payments can help you build a positive credit history.

And your credit score isn’t the only thing new lenders look at when they’re deciding if you pass muster. Though education debt may be viewed more favorably than, say, credit card debt, because it can be regarded as an “investment” in your overall earning potential and comes with a lower interest rate that credit card debt, it still affects your debt-to-income ratio (DTI).

And that might determine if a lender will approve your application for a car loan or mortgage, if the jewelry store will sell you that engagement ring on an installment plan, or if a management company will rent you your dream apartment. A lender wants to see that you’re bringing in enough cash to cover your debt payments—hence, looking at your DTI for a sense of how much you’re earning versus paying out to existing debt.

What Are Some Other Alternatives?

Deferment is better than defaulting on your student debt—by a wide margin. But it’s a short-term solution.

Are you certain you’ll be better prepared to make the same payments in six months or a year—even three years? If you expect your economic prospects to improve in a relatively short period, a temporary delay could be the way to go.

A better option may be to check on your eligibility for one of several federal loan repayment programs, such as income-driven repayment . Income-driven repayment plans allow you to pay 10%, 15%, or 20% of your discretionary income to your loans—depending on which specific plan you chose. While this generally means extending your loan term and therefore paying more interest over the life of the loan, it also can lower your monthly payments and make them more manageable.

You also might be able to improve your interest rate—and, therefore, your long-term cost—by consolidating and refinancing all your federal and private student loans into one loan with one payment.

If you haven’t yet missed a beat as a borrower—if you’ve graduated, have a job and still have a solid credit and financial background—you may be able to qualify for a new student loan at a lower rate. Depending on how you restructure your debt, refinancing could help you pay off your student loans at an even faster pace than you planned.

Can Refinancing Affect Your Credit Report?

Every person’s credit story is different, so it’s hard to say exactly how any change might affect it. On the one hand, refinancing your student loans might help get you out of debt sooner, which could lower your overall debt, thus helping your credit score.

Similarly, if you’re currently struggling to make student loan payments on time (which could hinder your score), and refinancing allows you to make on-time payments each month, that could also help your score.

Ultimately, refinancing could have a different impact on every financial situation and credit history. And there are few better recipes for credit report improvement than diligently making your debt repayments on time.

That being said, here are a few other things that may help if you’re considering refinancing:

•  Not waiting until you’re in default to shop for a refinancing loan. If you’re in default when you apply to refinance, it will likely make it more difficult for you to get a refinanced loan with a competitive interest rate

•  Reviewing your credit report for errors—and speaking up if there is any misinformation on your report

•  When looking into pre-qualify, you may want to be sure the lender will only do a soft credit inquiry to determine if you prequalify (which won’t affect your score)

•  Making payments on your current loans until your new loan is in place. And once you start paying your refinanced loan, it’s just as important that you stay up to date on your payments. Some lenders offer hardship assistance in certain circumstances—if you lose your job, for example.

Every lender has its own criteria for determining which borrowers it will do business with. If you opt to check your rates, SoFi will conduct a soft credit pull* to determine the rates and terms for which you qualify and show those to you upfront. The process is done online and takes just a couple of minutes.

If you decide to refinance with SoFi, in addition to potentially getting a lower interest rate, you can take advantage of other perks, including complimentary career counseling.

But remember: The goal of refinancing is to get back on track and then stay on track. That’s a key way you can help build a solid credit record that will make borrowing easier and less expensive in the future.

*To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

You may have heard that consolidating your debts can hurt your credit score. So, if you’re considering this financial strategy to free up cash flow and otherwise streamline debts, it’s natural to wonder if that’s true. And like so many questions related to finances, the answer depends upon your specific situation.

It’s important to remember that a combination of many factors can affect credit scores and to understand how those factors are considered in credit score algorithms. We’ll use FICO® as an example—according to them, the high-level breakdown of credit scores is as follows:

•  Payment history (35%): This includes delinquent payments and information found in public records.

•  Amount currently owed (30%): This includes money you owe on your accounts, as well as how much of your available credit on revolving accounts is currently used up.

•  Credit history length (15%): This includes when you opened your accounts and the amount of time since you used each account.

•  Credit types used (10%): What is your mix? For example, how much is revolving credit, like credit cards? How much is installment debt, such as car loans and personal loans?

•  New credit (10%): How much new credit are you pursuing?

Now, here is information to help you make the right debt consolidation decision.

Benefits of Debt Consolidation

When you’re juggling, say, multiple credit cards, it can be easy to accidentally miss a payment. Depending on the severity of the mistake, that can have a negative impact on your credit score. This, in turn, can make it more challenging to get loans when you need them, or prevent you from getting favorable loan terms, like low interest rates. Plus, even if you don’t miss a payment, when you have numerous credit card bills to juggle, you probably worry that one will get missed.

Plus, it’s not uncommon for credit cards to have high interest rates, and when you only make the minimum payments on each of them, you very well may be paying a significant amount of money each month without seeing balances drop very much at all.

So, when you combine multiple credit cards into one loan, preferably one with a lower interest rate, it’s much more convenient, making it less likely that you’ll accidentally miss a payment. And paying less in interest will likely make it easier to pay down your debt.

How you handle your debt consolidation, though, and the way in which you manage your finances after the consolidation each play significant roles in whether this strategy will ultimately help you.

Steps to Take: Before the Debt Consolidation Loan

Debt accumulates for different reasons for different people. For some, unexpected medical bills or emergency home repairs have served as culprits. For others, being underemployed for a period of time may have caused them to start carrying a credit card debt balance. For still others, it may be about learning how to budget more effectively.

No matter why credit card debt has built up, it can help to re-envision a debt consolidation strategy as something bigger and better than just combining your bills. As part of your plan, analyze why your debt accumulated and be honest about which ones were under your control and which were true emergencies.

And if you end up using a lower-cost loan to consolidate your bills, consider using any money saved to build up an emergency savings fund to help prevent the accumulation of credit card balances in the future.

The reality is that, if you consolidate your debts in conjunction with a carefully crafted budgeting and savings plan, then debt consolidation can be a wonderful first step in your brand-new financial strategy.

Debt Consolidation: When It Can Help Your Credit Score

Based on the factors used by FICO, here are ways in which a consolidation loan can help credit scores:

Payment history (35%)

Because making payments on time is the largest factor in FICO credit scores, a debt consolidation loan can help your credit if you make all of your payments on time.

Amount currently owed (30%)

Although you may not instantly reduce the amount you owe by, say, consolidating all of your credit card balances into a personal loan, there can be a benefit to your credit score here. That’s because the credit score algorithm looks at credit limits on your cards, as well as your outstanding balances, and creates a formula that calculates your credit card utilization.

Here is more information about credit card utilization, including how to calculate and manage yours.

Credit types used (10%)

As you may know, there are several different types of credit, such as credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans. According to myFICO , responsibly using a mix of these, such as credit cards and installment loans, may help your credit score.

However, it’s certainly not necessary to have one of each, and it’s not a good idea to open credit accounts you don’t intend to use.

Debt Consolidation: When It Can Hurt Your Credit Score

Now, here are ways that the same initial step—taking out a debt consolidation loan—may hurt your credit.

Payment history (35%)

As is the case with most loans, making late payments on a consolidation loan can hurt your credit score (depending on the severity of the situation). Loans in a delinquent status are mostly likely to have a negative impact on your credit, depending on the lenders’ policies.

Learn more about payment history .

Amount currently owed (30%)

Now, let’s say that you pay off all your credit cards with a personal loan and then you begin using them again to the degree that you can’t pay them off monthly. Any gain that you saw in your credit score will likely disappear as your credit utilization numbers rise again.

Another way that credit consolidation can harm your score is if you combine all of your credit card balances to just one credit card, resulting in a high utilization rate. But if you are able to keep it relatively low, it is less likely to negatively affect your score.

Learn more about amounts owed .

Credit history length (15%)

If you close credit cards that you pay off, you’ll reduce the age of your accounts, overall, and this can hurt your credit score.

Learn more about length of credit history .

Credit types used (10%)

If you combine all of your credit card balances into just one credit card, as described above, you won’t have opened an installment (personal) loan, so that won’t help with diversifying credit types.

Learn more about credit mix .

New credit (10%)

If you apply for a personal loan or a balance-transfer credit card and are rejected, this can cause your credit score to decrease. And if you apply for multiple loans or credit cards, looking for a lender that will accept your application, this can also hurt your score. Multiple requests for your credit report information (known as “inquiries”) in a short period of time can decrease your score, though not by much.

Learn more about new credit .

Concerned about building or rebuilding credit? Check out a few tips SoFi put together on how to strategically boost your credit score.

Investigating a Personal Loan for Debt Consolidation

When it’s time to apply for the personal loan, you’ll want to get a low rate. In February 2019, the average credit card interest rate was reported as 17.67%; this means that, by not consolidating your credit cards into a personal loan with a lower interest rate, you could be paying more interest than if you did.

When choosing a lender, ask about the fees associated with the loan. Some lenders charge fees; others,like SoFi, don’t. You can always use a lender’s annual percentage rates (APRs) as a way to understand the true cost of financing.

Also, you may consider calculating the shortest loan term that your budget can comfortably accommodate because, the more quickly you pay off the debt, the more money you’ll save over the life of the loan because you’re paying less in interest.

You can find more information about saving money as you consolidate your debts, and you can also calculate payments using our personal loan calculator.

Consolidate Your Debt with a SoFi Personal Loan

If you’re ready to say goodbye to high-interest credit cards and to juggling multiple payments each month, a SoFi personal loan may be a good option.

Benefits of our personal loans include:

•  Fast, easy, and convenient online application process

•  Low interest rates

•  No origination fees required

•  No prepayment fees required

•  Fixed rate loan

You deserve peace of mind. And by taking out a personal loan to consolidate debt, the stress of juggling multiple credit card payments can be history. Ready for your fresh start?

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Preparing for a new child is an exciting—and daunting—prospect. This can be doubly true when you are planning on growing your family through adoption. Adoptions costs can be remarkably high, but planning ahead can help minimize the stress during this life-changing process.

The Cost to Adopt

According to the most recent data from Adoptive Families , domestic adoptions typically cost $20,000 to $40,000. And the average international adoption costs $35,000.

For those who choose to adopt through the foster care system , the adoption costs may only add up to a few thousand dollars, but families still must plan for all the regular expenses of adding a child to the family, from buying bottles to preparing a new bedroom.

If you are adopting internationally or through a private adoption , the costs can add up quickly, and frequently include expensive international travel and several different types of fees.

Here are some of the common types of costs that arise during the adoption process:

•   Home study
•   Document preparation and authentication
•   Adoption agency application
•   Adoption consultant fees
•   Attorney fees
•   Networking
•   Counseling
•   Birth mother expenses

Each of these expenses can range from a few hundred dollars to several thousand dollars. These large out-of-pocket expenses can seem intimidating to potential adoptive families, causing them to worry that adoption is not financially feasible. There are, however, many ways to finance adoptions, ranging from taking advantage of grants and governmental programs to taking out a personal loan.

Using Grants to Pay for Adoption Costs

Because adoption can be so expensive, many nonprofit organizations offer grants to adoptive families. These grants can range from a few hundred dollars to the full cost of adoption.

Sometimes grants are offered to particular types of families, but most grants’ eligibility requirements are fairly straightforward and are applicable to most families currently in the adoption process.

A downside of adoption grants is that they are not guaranteed and they usually require extra application paperwork and possibly an interview. In general, however, adoption grants are one good option to consider when planning for adoption.

Using Employee Benefits and Tax Write-Offs to Offset Adoption Costs

One often-overlooked potential source of financial assistance for adoptions is your employer. Employer adoption benefits are a growing trend in large companies where there is a focus on employee retention and work-life balance. Employee benefits can range from things like discounted referrals to adoption agencies to outright cash grants.

Some employers will reimburse a certain percentage of overall adoption costs, while others may choose to directly pay adoption agencies for certain services. Each employer is different, but it may be worth contacting your company’s HR department and asking about any potential adoption benefits your company provides.

Another way to potentially offset adoption costs comes from a generous tax credit. The Adoption Tax Credit allows eligible adopting families to potentially receive a tax credit for qualifying expenses paid in the adoption process.

The credit, which was $13,840 in 2018, can help offset adoption fees like attorney costs, travel expenses, and agency dues. Talk to a certified tax professional to learn more. While adoption tax credits may help ease the financial burden, they do not help much with the upfront costs of adopting.

Using a Personal Loan to Pay for Adoption Costs

If you find that grants or other forms of financial assistance aren’t able to meet your adoption needs, you may consider taking out a adoption loan to help cover the upfront costs. Personal loans, which are often overlooked when it comes to planning for adoption, may offer a better interest rate and more favorable payoff terms than credit cards do.

A personal adoption loan is typically an unsecured installment loan. Unlike with a credit card, you can choose to borrow a set amount with a fixed interest rate and term, allowing you to pay it back in equal monthly installments over a set period of time. This means that you may be able to borrow enough to cover the full cost of the adoption upfront and then pay it off over a few years while avoiding high-interest credit cards.

Another potential benefit of using a personal loan to cover adoption costs is the short application process. The process is generally fairly straightforward and some lenders can disburse loan funds within days. This means that you can focus on what really matters: growing your family.

Starting the adoption process and looking for more money to help grow your family? SoFi’s personal loans offer no fee options and low rates to qualified applicants.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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The last thing any engaged couple wants is to start their new life together by going into debt. And yet, the costs can easily add up fast. First, there’s the wedding and all the events leading up to the big day. Then, there’s finding a place to live and making it your home.

Next, there’s the honeymoon—your chance to really relax and enjoy yourselves before married life gets real. You should remember this trip for the rest of your lives because it was a wonderful time spent together—not because you’re still paying for it. Here are some tips to make financing your honeymoon the least of your worries:

Setting a Limit on How Much You Can Spend

Maybe you’ve saved up for this dream trip, or Mom and Dad have floated you some cash. Boom. You’re done.

If not, you’ll have to come up with a realistic number and make it work. Sit down with your betrothed and have a frank discussion about what you want to do and how you’re going to pay for it. Talk about whether you’re willing to take on some debt, if necessary, and how you’ll pay it back if you do.

Looking for a place to house your honeymoon budget? SoFi Checking and Savings is a checking and savings account that earns you interest on all your cash. Plus, with SoFi Checking and Savings you are your +1 can easily merge your finances and get no account fees. We work hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time.

Setting Priorities & Making Trade-offs

For example: Would you be willing to cut the trip short a few days if it meant you could stay at a nicer resort? Would you be willing to pass on a day at the spa if it meant you could go snorkeling or skydiving? Can you do without room service breakfasts so you can have dinner at the Eiffel Tower?

Breaking Down Your Expected Costs on a Budget Worksheet

You can use Excel or any other spreadsheet program, or a simple checklist could do. Just keep in mind that your costs will start before you ever leave for your trip. You may need a passport or specific vaccines if you’re traveling overseas.

You might want new clothes or better luggage. Also consider where you’ll stay, how you’ll get around, what you’ll eat and drink, things you’ll do for fun—and don’t forget about taxes and tip.

Finding Ways to Save

If you have enough set aside in your honeymoon fund to pay for everything you want, good for you—start making reservations. But what if you’ve got a shortfall?

Before you start arguing, crying, or crossing off some of the most appealing plans on your list, start searching for savings:

Talking to a Travel Agent: A good travel agent can help you find honeymoon destinations on a budget and steer you to experiences that will make your trip special without costing a fortune. Yes, you could do hours of research online and book it all yourself, but don’t you have enough on your plate?

Booking early: Not only will you have a chance at better choices for cruise cabins, hotel rooms, and airline seats that fit within your budget, you can stop sweating those details.

Considering an all-inclusive resort: If you don’t have time to hunt down individual deals, consider searching for all-inclusive resorts or cruises, which usually include lodging, meals, soft drinks, gratuities, and some activities and services in the price.

Go on a “mini-moon”: If your honeymoon budget just can’t handle a blowout trip, plan a shorter excursion, maybe closer to home. You can still go luxe with spa days and gourmet dinners at a five-star hotel; just tighten up on other details.

You can always take a longer honeymoon later, when your financial reserves (and vacation days) have had a chance to replenish.

Promoting You Are On Your Honeymoon: Whenever you make a call, be sure to mention this is for your H-O-N-E-Y-M-O-O-N. It might get you a better room, a better table, a free bottle of champagne or some extra attention from staff. If they don’t offer a discount or freebies, ask.

Making a Plan for How You’ll Pay

When you’ve done all you can to close the gap between what you want and what you can afford, it’s time to figure out how you’ll cover the difference.

Creating a honeymoon registry: You can use all the cash gifts you receive to augment your vacation stash, or you can set up a registry (like The Knot’s Newlywed Fund ), where wedding guests can contribute to a general honeymoon fund or make a gift of specific honeymoon activities.

This way, family and friends know where their money is going, and you get to go horseback-riding on the beach or shushing down the slopes in Aspen.

Pillaging your credit card points: If ever there was a time to use up every credit card point and frequent flier mile you’ve ever earned, this is it. If you plan ahead you could get strategic—use cards that earn you points to pay for wedding expenses, then use the points you just earned for the honeymoon, flights, upgrades and more.

Be sure you can make the monthly payments on those cards as you go—or better yet, pay off the balances. Otherwise, you’ll be racking up interest.

Looking into a personal loan: Maybe your finances are temporarily flagging because of the wedding, but you and your spouse-to-be both have a good credit record, excellent salaries, and the wherewithal to make payments on time. If your shortfall will be short-lived, taking out a personal loan might help.

Sure, you could pile those travel costs onto a credit card. But think about it: If the interest rate is high or variable and you can’t pay off the balance on your card as soon as you get back home, you could ultimately be spending far more for every souvenir and spa visit than you planned.

With a personal loan, you can borrow just what you need at a competitive rate and make manageable payments. Knowing upfront what you’ve borrowed could even help you keep better control of what you spend.

Another plus: You can sign on as co-borrowers and have the funds delivered to a joint account, so the loan will belong to both of you—you won’t have to fret or fume about who’s paying for what.

Personal Loans with SoFi

Arguing about finances can put stress on many a relationship—but that doesn’t have to be you.
If a vacation loan sounds like a good option, shop for the best deal you can get. SoFi’s Personal Loans offer competitive rates, great member benefits, and customer service that’s there whenever you need it.

You can pay back the loan early if you like—there are no prepayment fees. And as a SoFi member, you’ll also have access to the financial services you’ll need in the future, from home loans to investing.
If you plan well, cut costs where you can, and borrow wisely if needed, you can start your life together on sound financial footing.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi can’t guarantee future financial performance.
This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
Neither SoFi nor its affiliates is a bank.
SoFi Checking and Savings^TM is offered through SoFi Securities, LLC, member FINRA / SIPC . Advisory services offered through SoFi Wealth, LLC, a registered investment advisor.

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