Weddings are supposed to be a dream come true – so why let event expenses get in the way? Wedding loans can help lower stress levels and let people choose the exact features and services they want. These are typically personal or signature loans that can help you or loved ones pay for specific events. While most couples spend less than $10,000 on weddings, those costs can ramp up quickly: Is your family going to be ready?
Is It Right For You?
Making sweeping statements about wedding loans is often unwise because every wedding is different, and costs for venues, catering, decoration, and services can vary greatly depending on scope and location. Additionally, more than one wedding loan can be taken out by separate parties, which allows for different financial strategies. If you are planning a wedding and feel like your cash reserves don't quite match up to your life goals, take a look at wedding loans.
Pros and ConsPros:
-Can be used throughout planning. Lines of credit and early personal loans can be used to pay off expenses throughout the wedding planning process.
-No collateral necessary. These loans tend to be unsecured, requiring no collateral (but often good credit) when applying.
-Multiple people can apply for the loan. Since many people directly involved in the wedding can apply for the loan, it may be easier to get a good faith or signature loan.Cons:
-Careful planning is key. Without a good plan, it can be difficult to make smart choices about wedding loans, especially in the middle of all the other details that need to be taken care of.
-Overspending may be easier. It's important to avoid overspending just because you have a wedding loan – the money needs to be apportioned properly.
What Else Should I Know About Wedding Loans?
The right wedding loan decisions typically come after careful budgeting. Take a close look at expenses and have all the choices finalized early on before applying for a wedding loan. This attention to detail will both help with the event, control costs, and make it easier to complete the first stages of applying.