For most people, a wedding represents the happiest, most exciting time in their lives. Unfortunately, as wonderful as this experience can be – it also suffers from the problem of being incredibly expensive. From paying for the catering at your after-ceremony meal, to buying the dress and offering money to the church, you could end up spending tens and thousands of pounds in a single day.
With the average British wedding costing something in the region of £18,000, it’s no surprise that most couples have to turn elsewhere for help when it comes to covering the cost of their wedding. Usually, a low-interest personal loan is one of the most convenient and least expensive ways to cover the costs associated with your big day. Of course, before you start applying for anything, you should think carefully about whether this solution is right for you.
Following, we’ll take a look at some of the positives and negatives of taking out a loan for your wedding, as well as offering an insight into some of the factors that you should consider before you get started.
Who Should Get a Wedding Loan?
Although many couples find that they have some small amount of money to put towards the costs of getting married, the truth is that the average cost of a wedding can be far too much to handle for some couples. Because of this, a personal loan that gives people the chance to borrow a significant portion of their wedding fees over the course of numerous years can be a popular solution.
Although you will have to pay back the amount that you owe to pay for your wedding with interest over a number of years, a loan can be far more affordable and viable for many couples who can only afford to take a small amount out of their paycheck every month. It’s a lot like saving up for a wedding, except you don’t have to wait to get the big day of your dreams!
Another benefit of taking a personal loan out for your wedding day is that most of the time the interest rates on those loans are fixed at a certain amount. This means that you can budget the amount you need to pay out each month accordingly. You can also choose a loan that has the term that suits your needs best – such as one, three, or five years.
It’s worth noting that repaying your loan within a shorter amount of time will usually mean that you end up paying less in interest over all. However, if you pay out the money over a longer frame your monthly repayments will be smaller – even if the amount you pay in full is higher. In some cases, you may find that your lender is willing to give you a payment holiday of a few months towards the beginning of your agreement so you can settle into your married life without worry.
When Might a Wedding Loan be Wrong for You?
A wedding loan that has a small interest rate can be an attractive solution to many couples. However, you might find that depending on how much you want to borrow, and what your personal circumstances are, the interest rates that are available to you are actually much higher. Remember that lenders will take your credit score into account when they are figuring out what kind of interest rate they should charge and how much you should be allowed to borrow.
In other words, if your credit history is poor, then you may need to rethink your decision to take out a personal loan. Most of the time, only people who have higher credit scores will be accepted for the best deals, while those with black marks on their record might be refused credit entirely. If you’re uncertain about your credit score, you might need to sign up for a free credit check or get more information before you attempt to apply for a loan.
On the other hand, if you would like to avoid getting a personal loan for your wedding, remember that there are some other solutions available. Many of the most appealing credit cards on the market today can offer 0% interest for an introductory period on your balance. If you have a good amount of discipline, then you could always borrow some of the money associated with paying for your wedding without any extra charges. This is a fantastic option for people who want to borrow a smaller amount.
Keep in mind, however, that borrowing cash on a credit card can sometimes turn out to be quite costly if you make a mistake. Remember that the 0% deal that some cards offer will come to an end at a particularly time, and you’ll need to pay off before this date to avoid higher interest rates.