Wedding loan – is it worth it?
It is known for a long time that wedding and reception are very expensive whose organization is able to spend a night’s sleep with not one couple. The problem of lack of sufficient funds affects most relationships in which young people cannot always count on financial support from their families. Fortunately, the fact that you are not married yet does not prevent you from trying your hand and taking out a loan that banks are increasingly willing to give to future spouses. Of course, opinions on borrowing money to finalize the wedding reception are divided, so we will discuss this topic today and analyze whether it is a reasonable step or better to avoid it.
What are the costs of a wedding?
The cost of a wedding dress is from USD 500 to even USD 12,000. Some brides buy second-hand dresses, others choose outfits directly from designers, and others rent dresses on commission (here, however, there is stress so that the dress does not get dirty and that it can be easily returned after the party). In turn, the cost of a suit for a groom is from USD 800 to USD 10,000. Of course, you can buy cheaper or used models, but it is usually difficult to match a specific suit to your figure by opting for such solutions. The price of a groom’s outfit varies depending on the type of material, collection, and method of performance.
Why is credit a good idea and shouldn’t be afraid of it?
As you can see, most young couples spend between 10,000 and 30,000 dollar for the wedding, sometimes also getting smaller or larger financial support from their families. If you are unable to finance this day yourself and you do not have enough funds, credit seems to be a reasonable option. It will cover the costs of the room, wedding dress, suit or other small items. This option can be a cause for concern, especially for young people who are just starting their careers.
However, it is worth spending a year or two to pay off the loan, thanks to which you will have memories of a beautiful and unforgettable wedding. You will also not have to borrow money from family and friends who will certainly appreciate your resourcefulness on a new way of life. Regularly paying off your debt will also build a positive credit history, which may be useful for you in the future. However, it is worth borrowing only as much money as we really need. That is why young couples should focus on saving, and only turn to the bank for the missing funds.
If you decide to take a loan from a bank, you have to take into account a large number of formalities. You are also not 100% sure if the bank will grant you a loan because you probably do not have a credit history yet or are not employed under an employment contract. In this case, the best option would be to use a non-bank loan. You can get it much faster and easier.
An installment loan may also be a good idea, which usually allows you to get more money and quickly appears on your account. Before making a decision, however, check out some offers to choose the best one for you. For this purpose you will use credit comparison websites available on the Internet.
How do you pay back a loan?
More and more couples in wedding invitations mention that they prefer to receive money instead of gifts or flowers. If you want to pay off the loan quickly, you can use the money you receive as a gift during the ceremony. Regularity is extremely important in paying off loans. Pay off your obligations on time to keep your credit history positive! If you have a problem paying off your loan, contact your lender and work out a debt repayment plan.
However, the most important thing about loans is to properly analyze your financial situation before deciding to take out a loan and submit an application. Consider if you can pay your debts on time and calculate the amount of loan you can afford.