While the national average wedding cost of well over £30,000, it is vital to remember that a fantastic wedding may be had on any budget. Saving, prioritising, and keeping to the number you started with are the keys. However, we are not implying that it is always simple. Ideally, you should avoid paying for your wedding with credit. However, in some circumstances, taking out a wedding loan may be the best option. We took a look at the pros and cons of wedding loans.
Wedding Loans Examined
First and foremost, no such thing as a “wedding loan.” A wedding loan isn’t something you can just stroll into a bank and ask for. What we’re talking about here is taking out a personal loan to pay for your wedding. The majority of financial advisors would advise you to stop here and avoid wedding loans. A personal loan is kind of a last-ditch effort. The problem with personal loans is that they are frequently taken out by people who are attempting to spend money they do not have.
Pros And Cons of Wedding Loans – Credit Card Link
I’d also include credit card expenditures because I believe many people use their credit cards to pay for wedding-related expenses. And they could or might not have the funds to pay it off completely. Personal loans are beneficial for avoiding credit card debt. However, it’s unlikely to be a quick remedy for a down payment on your location. However, taking out a wedding loan is not unheard of, and there are a few options for obtaining a personal loan to assist with wedding expenses.
Advantages of Loans
They’re a quick and easy way to get cash. As you begin to plan your wedding, you will notice that your venue and providers require deposits up front. This is so that they can reserve their space and services. These expenses might easily mount up. Especially when your bridal gown and accessories are included. A marriage loan might provide you with the funds you need to cover your deposits if you do not have a large sum of money in your savings account.
They are simple to obtain. In most circumstances, you may apply for a wedding loan online in only a few minutes. This is after you’ve organised your financial documents. Your application will be reviewed by your bank or loan provider, and if you are approved, lenders will let you know quickly. They will also deposit funds straight into your desired account at great speed. Often within 24 hours.
Other Pros
You will receive your funds promptly. In a matter of days, most lenders will assess your application, approve it, and deposit your loan funds. Some lenders even guarantee loan funding in as little as 24 hours.
Better than credit cards in terms of interest rates. If you have an excellent credit score and a long credit history, you may be able to obtain a wedding loan at a cheaper interest rate than your credit cards.
Prepayment penalties are not charged on some loans. Some loans allow you to pay off your loan early without incurring penalty fees, potentially saving you money on interest. You may not have to pay any interest if you plan to pay off your loan with cash gifts from wedding guests, or if your parents or other family members have pledged to help fund your big day. Check the terms of your loan to see if prepayments are permitted.
Your credit score will increase. Couples who want to develop or improve their credit might do so by repaying their marriage debt on time. Make sure you don’t skip any instalments or pay late. A higher credit score will make it easier to obtain loans in the future and will help you to keep your interest rates low.
Pros And Cons of Wedding Loans – Disadvantages Of Wedding Loans
Rates of interest. You will be paying interest on your wedding loan for years if you take out a loan. For example, if you take out a £15,000 loan for 5 years at 10% interest, you will pay nearly £4,000 in interest over the course of the loan. Is spending an extra £4,000 on your wedding day really worth it?
You’ll be in debt from the start of your marriage. Money problems are a common source of stress in relationships. Do you wish to begin this new and exciting chapter of your life with a three- or five-year monthly loan payment?
Pros And Cons of Wedding Loans
Existing loans make qualifying for new loans more challenging. Are you planning on purchasing a new car or maybe a new home following your wedding? When a bank considers lending to you, they will look at your current debts to see if you can afford the new loan. If you have a lot of existing debt, you’ll need to figure out if you can afford the new loan. If you have a lot of current loans, the bank may not be able to provide you a loan for the amount you need or may even deny your application.
Final Thoughts
They may persuade you to spend more. It’s possible that receiving the funds for your wedding loan in your bank account will make you feel wealthy. You could feel more at ease upgrading your floral arrangements, selecting that out-of-budget gown, or inviting a few more guests to your wedding. All of these enhancements add up.
