If you are getting married and don’t have money for paying for it then a wedding loan can cover your expenses. Or it can get you in some serious debt.
Wedding loans aren’t like the proper loans. It only exists in the paper. What you do is take out a personal loan and use it for anything you need like your wedding. In one hand, it’s a great way to fund your dream wedding. On the other hand, it can add to your existing debt and strain your finances.
Like everything else, wedding loans too, have some benefits and disadvantages. This article will take you through the positives and the negatives of the wedding loans.
The Cost of the wedding
Weddings are huge, not just in terms of their significance, but also the cost of the event. Unless you decide to elope, you will need money to cover your wedding expenses.
Here is a little fact: the average cost of a wedding in the USA is $35, 329. And, this average doesn’t include the honeymoon. This amount is not something you can pay out of your pocket unless you are saving for it. But you can have a nice, cozy wedding in a budget of say, $10,000. There are plenty of ways to throw a frugal wedding.
What are Wedding Loans?
As said before, there are no such things as the “wedding loans”. They are just a personal loan disguised as a wedding loan. The rules of borrowing and paying are same as any other personal loan.
The wedding loans offer you the money you don’t have, to spend on your wedding you cannot afford. It may sound a bit harsh, but it’s true. The loans are just another way to provide you money to spend. You can either take out a loan from the bank or from the Online Personal Loan Company. You can also use your credit card to fund your wedding.
Remember one thing though: the wedding loan is a debt and you will have to pay it off through monthly checks. It is a long-term debt that you will need to pay off.
Who can take the wedding loan?
It’s for everyone. Anyone who is willing to pay off the debt later on with monthly payments can take this loan. And, you have numerous options. With a good credit score, you can easily get the wedding loan for your dream wedding.
This is a decision you need to take with your partner as you both will have to bear the burden. This is something you need to discuss early on so that it’s clear that you are on the same page. Finance can be a reason for break-ups of the marriages. So, it’s essential that you are ready for the long-term loan payment.
What are your Options?
There are a number of ways you can take a wedding loan. Be warned though. Many financial experts will discourage you from taking huge wedding loans. If you take personal finances seriously, then you already know the answer.
Nevertheless, here are some of the ways you can take the wedding loan:
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Apply for the personal loans
They are one of the best ways to get a wedding loan. You can also opt for the Online Personal Loan Company for paying for your wedding. Here, online investors will fund your loan once you are approved by the company. There is not much difference between the bank and the online loan company. You will still be paying monthly checks. The only difference is that there are no fines for the delayed payment in the online loan company.
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Taking loans against the House Mortgages
This is something the parents do when they have to fund their children’s wedding. It’s not advisable though. It could harm their retirement savings. Some parents are about to retire or are already retired. The burden of the debt isn’t something they should be handling at their age. Use this option only as a last ditch.
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Using the Credit Card
Another way to fund your wedding is by using your credit. It’s the same as taking the loan. It is debt anyway. If you are comfortable paying the debt over the next few years then you can use the credit card. Once again, the financial experts discourage couples against using the credit card for funding the wedding. It could severely affect your future financial situation.
The Bottom Line – All these options are easy and convenient, but they do come with consequences. Make sure that you are ready to face it before you jump into it.
The safest option
One of the easiest ways to fund your wedding without falling into any kind of debt is to delay the wedding and start saving for it. Or you can pool money from your current savings like the emergency saving. Some people do start saving for their dream wedding even before they are engaged. If the wedding is in your mind and one of the important goals, then start saving as early as possible.
Conclusion
A wedding loan is a risky venture and should only be taken by those who are capable of handling the debt. The silver lining is – you can always have a wedding in your budget with little adjustments.