Understanding the Facts about Wedding Loans

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.

All About Getting a Loan for Debt Consolidation

Do you owe money somewhere, to someone? You’re not alone. More people than you could possibly imagine currently owe cash to some organisation or business in the United Kingdom, and many of those owe cash to more than one credit card at a time. Since money can be hard to come by, and even harder to manage, plenty of people turn towards loan and credit agreements to help them afford the things that they need in life. Unfortunately, as these different loans start to build up and grow over the years, it becomes more difficult to keep track of everything. Eventually, you might find that you end up getting your finances into a serious mess.

Rather than simply allowing yourself to get muddled, it makes more sense to ensure that all of your debts are sorted into one place – so you don’t forget something or miss a repayment. Debt consolidation loans can be the perfect solution for this. As the title helpfully indicates, this process works by consolidating all of your debts into one single loan, so that you only have to worry about a single payment leaving your bank account every month. For many people, a debt consolidation loan can be an easy way to streamline debt obligations and take some of the stress away from managing money.

Understanding Debt Consolidation Loans

If you’re new to the concept of debt consolidation, don’t worry – we can explain.

Debt consolidation loans work by simply moving all of the money that you have borrowed into a single loan, so that you can close down all of the other loan agreements and credit cards that have been bothering you over the years. Instead of making a range of different and separate payments to lenders every month, this means that you only make one single payment to your consolidation loan provider.

Just remember, if you’re thinking of consolidating your debts, you need to make sure that there aren’t any fees or problems with paying off debts early. Sometimes, your lenders will charge you a small fee if you decide to pay the money you owe before it’s due, and you’ll need to factor this into your calculations when you’re deciding whether or not to get a consolidation loan.

Many debt consolidation loans are unsecured, which means that you don’t have to give up your home or another important piece of property if you can’t make your monthly repayments. However, this doesn’t mean that you can simply pick and choose when to make the payments that you owe. Remember that your lender will have the right to pursue you in court if you can’t keep up with your payments.

With that in mind, you should also be wary of consolidation loans that are secured, as if you struggle with repayments, you might find that your home is at risk.

Should you Get a Debt Consolidation Loan?

Perhaps the biggest advantage of a debt consolidation loan is that it allows you to place all of your debts into a single place, so that you only have one rate of interest that you need to keep track of, and a single payment that needs to be paid each month. For many people who already struggle when it comes to managing money, this can make managing debts a lot more straight forward than having to think about making a range of payments each month. You will also find that you have the opportunity to shut down other loan accounts and credit card accounts which should help to improve your credit rating by showing lenders you can responsibly manage your finances.

One potential negative of consolidating your loans, however, is that you might end up paying more in interest than you need to. For instance, if you transfer credit card debts into a consolidation loan, you would end up paying more interest if you moved those balances to a balance transfer credit card that provides a 0% introductory period.

Deciding whether or not a debt consolidation loan is the right option for you will be a very personal choice, and it should be something that you think about carefully before jumping into anything too quickly. For instance, remember to work out how much of a loan you will need to take out in advance, and check the available interest rates that you can access. Remember that the interest you pay will be higher depending on the amount you want to borrow.

At the same time, if you find that after you take out your debt consolidation loan, you feel that you might be able to pay the debt early, you should check to see whether you might suffer any penalties for doing this. Remember that the longer it takes to pay off your loan, the more you will ultimately have to pay in interest.

Borrowing Cash for a New Car: Financing Deals

Purchasing a new car – whether you opt for a secondhand vehicle that still has plenty of miles on the clock, or a brand-new model that still shiny and brimming with potential, can be an exciting experience. Unfortunately, before you can begin enjoying the wonders of your new car, you’ll need to start thinking carefully about how you’re going to arrange the financial deal you need to cover the costs associated with getting your wheels on the road.

Most people spend a number of hours comparing the different models and makes of car that they want before they head to the dealership, yet those people don’t spend nearly as much time figuring out what their best options are regarding finance and loans. Unfortunately, paying more than you need to borrow the cash for a car could mean that your vehicle ends up taking you over your budget each month – leading to debts that you’d rather avoid.

If you want to get on the road the right way and make sure that you’re spending the least amount possible on your new car, then you need to compare and contrast your available options, from car financing to loans.

What Kinds of Car Finance Are There?

The first thing to remember when you’re checking out the different financing options available for your new car – is that all financing options are loans. You will need to pay back the money that you borrow over a fixed period of time, and there is usually some kind of interest to consider too.

Hire purchase plans are one of the most common options for people in search of an easy way to buy a new care. These plans require you to place a deposit in some manner and commit to a specific number of monthly instalments that will help you to pay for the car you are purchasing. With a hire purchase plan, although you’ll be able to drive the car from the moment you sign up for your agreement, the vehicle won’t actually belong to you until all of the instalments have been paid.

The biggest threat in a HP plan is that your provider will have the right to take your car away from you at any time if you start to fall behind on payments. However, repossession does take time and it’s often a last resort solution. In most circumstances, you’ll first get a written notice that will give you a chance to pay off the arrears owed. If you cannot pay that money, then a specific court order will be required before you can have your car taken away from you. Importantly, you will not be able to sell your car to someone else before you have made the final instalment in your HP. What’s more, ending the agreement early is likely to prompt a penalty.

Using Personal Loans and Credit Cards for Cars

If you’re not interested in a hire purchase plan to help you get your new car, you could always consider options like personal loans and credit cards instead. A low-rate loan is often a fantastic way of paying for your car, and many people think that it is generally a better idea than paying for a hire purchase agreement. With a personal loan, you can always sell your car if you end up not having enough money to keep up with your repayments.

However, the lowest rates for personal loans are generally given to people who take loans between £7,500 and £15,000 in value, which means that you might want to consider adapting your loan request according to these numbers. If you need to borrow a particularly large amount, however, you might find that offering an asset as security allows you to get a lower interest rate. Just remember that if you default on the repayments with a secured loan, your home could be at risk.

Alternatively, for cheap car purchases, a credit card that offers a limited 0% of interest for a certain amount of time could be a good choice. Of course, you will need to be very careful with the way you use your cash if you choose to accept a credit card. If you do not pay the money owed before the 0% interest rate ends, you could end up dealing with very high interest rates.

Other Options

In alternative circumstances, you could always consider a leasing agreement instead of a personal loan or credit card. Leasing agreements are a form of long-term rental contract which you use to pay a monthly fee which allows you to drive your car for a certain number of miles. These are often popular with people who want to drive a new car without paying large amounts for it upfront. Sometimes you will be given the option to purchase the car you drive at the end of your lease.