Loans

What Are The Pros And Cons Of Getting A Loan For My Wedding?


What Are The Pros And Cons Of Getting A Loan For My Wedding? 12.08.2019Leave a comment
What Are The Pros And Cons Of Getting A Loan For My Wedding?

The irrepressible desire of young people to organize a bright and magnificent holiday and the high cost of all its components are pushing future spouses to seek financial support from a bank or online lenders.

For the sake of self-affirmation, the newlyweds, and sometimes their parents, willingly get into huge debts without thoroughly thinking over the issue.

Therefore, is it worth taking a loan for a wedding or is it better to abandon this idea? Thoughts on this matter always diverge. Each of the parties supporting and not supporting a loan for a wedding, most likely, will remain with their own opinions.

Still, it won’t harm to weigh it all again. This article contains the obvious pros and cons of borrowing and not borrowing for a wedding.

Description Pros
The opportunity to organize the celebration of your dream;
relatives will, most likely, ease their pressure, and the newlyweds will be able to make more independent decisions during the organization of a big day;
the opportunity to spend a honeymoon in almost any country in the world;
lovebirds can pay attention to all the little things: from creative invitations to personal gifts to guests in gratitude for their presence at the event;
the possibility of lavish celebration;
unlimited budget freedom to choose the very restaurant, photographer, outfits, etc.
no need to save on salutes, fireworks, and an incredible wedding cake.
Description Cons
family life begins with a debt;
cons
the debt burden will limit the spouses in the future costs;
cons
the risk of not repaying the funds on time due to the loss of a job.
cons

Advantages of a Wedding Loan Online

It is easy:

  • to evaluate: online calculator;
  • to choose: convenient terms;
  • to pay: fixed interest rates;
  • to apply: online application;
  • to repay: ahead of schedule and free of charge.

In the life of every person, few events are as exciting and responsible as a wedding. It is not surprising that usually soulmates do not spare time, nor strength, nor finances: everyone wants to start a family life marvelously like in a fairy-tail and on time.

On average, in the USA, according to various resources, they spend approximately $20,000-$30,000 on organizing weddings.

Average Wedding Cost by Year 2008-2018

Not every young family can find such a means. In order not to postpone the event, many newlyweds prefer not to save on guests and celebrations, but to get a wedding loan at the financial organization.

The amount issued can fully cover the costs of the venue, reception, a fabulous bride’s wedding dress, flowers, etc.

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Best Offers in December, 2019

Lender APR Loan Amount Loan Term, Mo
3.99% – 35.99%
$1,000 – $100,000
24 – 84

4.73% – 35.99%
$1,000 – $50,000
36 – 60

59% – 199%
$500 – $10,000
9 – 36

5.99% – 24.99%
$5,000 – $35,000
24 – 60

5.99% – 35.99%
$500 – $5,000
3 – 36

Nowadays, taking out a loan has become even easier and more effortless. If lovebirds decide to lend online for a wedding, here are definite benefits waiting for them:

Easy to evaluate: online calculator

To pre-evaluate the capabilities and find out the conditions of a lender, five minutes is enough.

A convenient online calculator on the website allows acknowledging tariffs taking into account the required amount and terms of the loan for the wedding.

It is advisable to try to consider options with different amounts of borrowed funds and different periods of their issuance and choose the best one for yourself.

Easy to pay: fixed interest rates

The APR for the newlyweds’ loan is determined individually. Its specific value is established based on the documents provided.

So, it’s better one who has a higher and more stable income, credit to register for receiving funds and count on more favorable APR.

Easy to repay: ahead of schedule and free of fees

For personal loans, including those which are being received for weddings, early repayment is possible: there is no additional charge for this, as a rule.

Easy to choose: convenient timing

Usually, it is possible to take out a loan for 2-5 years. A couple can choose the repayment term taking into account their capabilities and plans for a future life together.

Easy to request: online application

Applying online saves time and energy for the main thing, they are not wasted on visiting the bank branch.

A couple can concentrate on preparing for a wedding, and get a decision on a loan in a matter of minutes, via the Internet. It is enough to fill out a convenient online application on the site (find out how to apply).

If the application for a loan is approved, one will receive a text or email. The funds, naturally, will be transferred directly to the bank account in the full amount.

Disadvantages of Wedding Loans

The main disadvantage of a loan for a wedding is psychological. It is difficult to start building a family nest if the debt was the first “rods” in it. At the start of a life together, young people will already have to acquire a lot, and, here, there is also the need to withdraw certain amounts every month and give to the lender.

wedding in USA
wedding in USA

The second drawback is the cost of such services. A loan for a wedding will cost the soulmates 5-15% per annum, on average. An unsecured loan will cost even more. One can reduce costs by providing collateral. Depending on the amount of the loan, it can be a car or a house.

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Also, a person can convince someone from relatives or friends to act as a guarantor of repayment. It is worth noting that the option of a loan for a wedding is most suitable for couples who have high salaries and a good credit rating.

Loans for a wedding open a new path for lovers to their long-awaited dream. Of course, money in debt for a wedding is an excellent and alluring opportunity for young people, as soon as it can solve all financial problems associated with wedding costs.

They can immediately order one of the most experienced photographers for the wedding celebration, buy the latest delectable outfits, pay a restaurant rental, and order a limousine or some other kind of a wedding car.

A Personal Loans Marketplace

On the Internet, there are various convenient options for obtaining wedding loans online. If a person hesitates which lender to choose and which conditions are better, there are such websites as personal loan marketplaces where one will be provided with multiple creditor options at once.

Best Offers in December, 2019

Lender APR Loan Amount Loan Term, Mo
3.99% – 35.99%
$1,000 – $100,000
24 – 84

4.73% – 35.99%
$1,000 – $50,000
36 – 60

59% – 199%
$500 – $10,000
9 – 36

5.99% – 24.99%
$5,000 – $35,000
24 – 60

5.99% – 35.99%
$500 – $5,000
3 – 36

In fact, such an organization is an information portal that has been created to facilitate the task of finding, for example, a loan for a wedding for users. On the web resource, the applicant can filter the current offers of various financial structures.

Wedding

The site itself does not lend to people, does not check documents, and cannot affect the transaction of funds by a credit institution to a borrower. It is an intermediary between a potential borrower and a financial institution that provides the most complete information about a particular loan. The site cannot be held responsible for the actions of both parties.

The user can apply for a wedding loan at any time convenient for him. The questionnaire is available 24 hours a day, 7 days a week. This makes it possible to study the information in a relaxed atmosphere. Such a form of lending is convenient because a person does not need to leave work in search of a financial institution that can provide a loan. All actions can be carried out without leaving home. An applicant has to fill in only truthful data in the questionnaire. One should not cheat a financial institution, as this can lead to a denial of a loan.

Wedding
Wedding

When filing applications at once in several companies, a situation may arise in which they all approve the issuance of a loan for a wedding. In this case, the borrower can choose the most profitable loan for himself, and simply refuse the other offers.

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When obtaining a loan at a financial institution, a person should be aware that this is the same loan like any other and must be repaid on time.

What One Should Remember When Deciding to Take a Loan for a Wedding

If a couple decides to take out a loan, here’s what they need to keep in mind. The easiest and most effective way to get a loan for a wedding is to get a personal loan.

Each financial organization has its own requirements, restrictions, and conditions. But the standard requirements and features are the following:

  • A wedding loan is a instalment loan for a certain amount without specifying the purpose of use. Today, many lenders provide services of this type. When applying for a loan, lenders may require confirmation of the source of income and a good credit history. Therefore, when applying for a wedding loan, take care of supporting documents.
  • It should also be noted that the lender may charge a fee, for example, for issuing a loan. By giving a wedding loan, the financial organization can charge about a 0-8% origination fee. It is important to read thoroughly a lending agreement.
  • A creditor can provide one with a loan for a wedding for a period, most often from 2 to 5 years. Some of them practice early repayment of the loan, but there are exceptions when a person can be fined for it.

Today, more and more often, lenders provide loans for specific purposes of use: for home repairs, for the purchase of a car or real estate, etc. Among the entire range of lending services, a wedding loan is also provided. But the requirements for them are almost the same.

All an Applicant Needs Is:

  • to choose one or another lender which annual interest rate suits him;
  • to apply for a loan for a wedding;
  • to provide supporting documents.

A Loan for a Wedding (A Personal Loan) Has Its Benefits:

  • firstly, interest rates are lower than those of credit cards;
  • secondly, loan repayment periods are longer;
  • thirdly, many lenders don’t put charges for early repayment of the loan.

What Difficulties May Await the Newlyweds After a Loan For a Wedding

Not all lovers will easily meet the requirements of lenders and, also, lending has its pitfalls.

  • It will be difficult for freelancers, for example, to take a loan because their earnings are not very stable, especially since such people have no guarantee that they will find the money for on-time loan repayments. In a word, before one goes to take money for a wedding, they need to think about whether they will always have money to pay off the loan.
  • It is advisable to have “a life vest”, sort of. People who can help solve financial difficulties with a loan if any (parents/relatives/friends)
  • If a couple wants to have children right after the wedding, it may be problematic because it is no secret that children need huge cash expenses.
  • It’s risky to take a loan secured by the house, as in the future a person may lose a job, or a salary may be reduced.
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Of course, it is best to focus only on material values, or wait a bit with the wedding and save some money.

But the problem is that the prices for all services are increasing every month, and even if people have saved a huge amount of money together, you still can’t organize a magnificent, beautiful wedding.

An Expensive Wedding in Debt, Is It Worth It?

For many people, a wedding is very important, so no money should be spared for it. But before taking out a big loan for a wedding, it could be useful to consider the following:

  • The quality of the wedding is not related to the quality of family life. 

Unfortunately, no matter how gorgeous your wedding will be, it has nothing to do with the possibility of a divorce. There is not a single reason why wedding and family life should be connected. A huge share of divorces of young families in the USA is a silent witness to this. At the wedding one has fun. In family life, it is necessary to work and solve everyday problems: what to eat, where to go out, to which school to send the child, “how much this thing will be lying around here”, “fix that faucet in the bathroom finally, for God’s sake!”.

At a wedding, you are loved just like that, in life – for deeds and merits. At the wedding, you look good. After the wedding – as usual.

  • A lush wedding does not guarantee that the couple will not divorce.

The wedding does not say anything about the family: whether the husband will be an alcoholic or a harlot, how the wife will feel with him, how much they will earn and how will raise children. And, certainly, a magnificent wedding does not guarantee that this couple will not divorce in the next two years. A wedding is a performance.

  • Want a lavish wedding – save up for it.

This does not mean that a marvelous wedding cannot be held. Of course, it is possible. If you can afford it, then spend as much as you like for the wedding. After all, it is a once-in-a-lifetime occasion. At least, it is meant to be.

What if to Save Up For a Wedding by Yourself?

  • A person does not owe anything to anyone: neither a lender nor the parents. A collector will never come for wedding rings. Spouses will not sit at night in the kitchen, thinking about how to scrape together on the minimum payment.
  • As long as one is saving up for a required amount, they will inevitably learn how to earn and invest.
  • While saving, a couple will live together, get to know each other better and, perhaps, break up before the wedding. Or vice versa: they will understand that they are a perfect couple, earn great money together and can afford any wedding.
  • It happens that when people decide to wed for their own money, they immediately decide not to do it, but to buy a car or make a contribution to a mortgage.
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Conclusion

As one can see, the idea of ​​lending for a wedding has quite significant pros and cons. The main thing is that at the end of the honeymoon spouses do not have to regret the obligations undertaken for the family. Future husband and wife must take a very responsible approach to the issue of the loan request, evaluate all the positive and negative sides of this deal and decide together whether it suits them or not.

Deciding on taking out a wedding loan is, practically, the first step of a couple as future lifelong partners, the first “test of endurance” of some kind. Both should be supportive, understanding, and fully aware of the consequences of their decision for the future life together and healthy financial state of a family.

Therefore, lovebirds must calculate thoroughly the expenses of an upcoming wedding, discuss what exactly they want to have at it, which amount won’t be crucial for them, and how much they will be able to give for monthly payments without affecting the normal financial well-being of a family. It is important to stay cool-headed and down-to-earth.

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Andrei Shilkov

Blog author. I am well versed in Finance and Digital Marketing. I have two bachelors degrees in Finance. Born in Russia, but later moved to the USA, to western Pennsylvania, the city of Pittsburgh. I have a Certified Public Finance Officer (CPFO) certificate. I also worked at IRS and Microsoft.

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