It is no secret – weddings are very expensive. The price for an average wedding has grown exponentially and rapidly in the last decade. The high cost is infiltrating countries all over the world. Certain destinations cost more than others. Tropical destination weddings are very popular, but these weddings are also more expensive than just getting married in your local area.
Weddings are so expensive that even planning the wedding itself can get costly. To help with the stress and chaos involved in planning a wedding, many people opt to hire a wedding planner. While wedding planners can be life savers during the process, they do not work for free. A bigger wedding means inevitably spending more money.
In order to cover the cost of the wedding, couples scramble to find financing options that are right for them. A personal loan is one option to consider. A personal loan can be taken out in order to help manage the cost of weddings. As with any financial decision, you must be prepared for the responsibilities that comes along with it.
Pros: You can take out as much money as you need in order to have the wedding of your dreams.
Cons: You may take out more than you need for a one day event. Having access to extra money is nice, but it may be too tempting for some people to overspend simply because the money is available to them.
Pros: You can finance the money that you spend on your wedding. You do not have to pay it all back at once. You can enjoy your honeymoon. It may be easy to make monthly payments.
Cons: It may take you several years to pay back everything you own on a loan. Top that with mortgage payments, student loans, and other debts and you could be looking at a lot of money coming out of your account each month.
Pros: Personal loans tend to have low annual percentage rates. Annual percentage rates effect your yearly interest rate.
Cons: If your credit is not the best, it could also adversely affect your interest rate. Taking out a loan can affect your credit score as well.
Pros: A personal loan takes the burden off family members to pay for an expensive wedding. If your parents or the parents of your fiancé intend to pay for all or part of the wedding, taking out a small loan may help alleviate the cost of things. It may help to spread out the financial burden.
Cons: You go into your married life with more debt. If you want to mortgage a home after you get married, it will add extra debt on your credit history. It may affect your interest rate on your mortgage.
Before you make any decision regarding a private loan, make sure to do your research. Compare companies and banks to make sure that you are making the right decision about your future. A personal loan is a financial commitment. Failure to pay it back in a timely manner may result in negative consequences, so be mindful of that when making your decision.
Disclaimer: this article is not intended as financial advice. If you are interested in a personal loan, contact a financial advisor or loan representative.