Weddings are getting more and more expensive, with the average UK wedding costing well over GBP15,000. People are spending more and more on their weddings as the cost goes up every year. To pay for this very important event, you might want to think about getting a wedding loan. You can use a wedding loan to pay for all or part of your wedding, so you can have the ceremony you really want. Here are some things to think about before applying for a wedding loan if you want to learn more.
Unsecured wedding loans
Even though it might be possible to get a secured wedding loan, most wedding loans are personal, unsecured loans. You don't have to put up anything of value as collateral for this kind of loan, so you don't have to put your home at risk. Also, many people who are just getting married do not own property, and if they do, they may already have a mortgage and not want to borrow more money against it. You will be able to get some kind of unsecured wedding loan as long as your credit is decent. Unsecured loans are also easier to get because you don't have to go through the process of having your house valued.
How much debt do you want?
Before taking out a wedding loan, you should think about how much debt you and your partner are willing to bring into the marriage. You will need to decide if you want to apply for the loan separately or together, and you will also need to think about other debts you may have, like credit card or mortgage payments. You should only borrow what you can really pay back. Even though your wedding is a big deal, it's not worth getting into serious debt over.
Better budgeting skills
Once you know how much you want to borrow and have applied to see how much you can get, you can make a wedding budget. If you already have a certain amount saved up, it will be much easier to figure out how much money you need for your wedding. You know how much money you have, so you can plan the details around this amount.
Don't waste money.
You can also save money on your wedding by getting a loan. Even if you have saved money for your wedding, you might end up paying for some of it with a credit card, which has a much higher interest rate than a loan. Also, if you are pre-approved for a wedding loan, you already have the money and can talk to wedding vendors about prices. People like caterers and entertainers may be willing to give you a discount if you can pay them up front. This will save you money on your wedding and make sure everything goes well.
Compare prices and read the fine print.
It's important to look around for the best rate on any loan. Also, make sure you fully understand the contract before you sign it. The loan you take out to pay for your wedding is just as important as the wedding itself. You'll have to pay back the loan for a long time after your wedding, so you should make sure it's the right choice.
