Throwing a memorable wedding can cost tons of money, from marriage license and meals to accessories, beauty treatments, welcome bags, transportation for guests, and a lot more. Many couples look for ways to finance their wedding, and this can be a challenge if you are already indebted or working a minimum wage job.
Borrowing for a Wedding
This is a joyful and very special occasion, but it is also an expensive one. One way to finance your wedding is to apply for a consumer loan to make up the shortfall. Many banks offer low-interest loans as an inexpensive solution and a way to access extra funds. Couples usually go for personal loans with fixed payments, which makes budgeting and planning easier. The term varies from one issuer to another and is usually from 1 to 5 years. The main benefit of short-term loans is that borrowers save on interest charges. A longer time frame means lower monthly payments but the total interest bill will be considerably higher. Some financial institutions also offer payment holidays of 2 – 3 months to attract new customers. This is a great option if you need some breathing space or have unexpected expenses to meet. Another way to finance your wedding is to apply for a secured loan. In this case, you’ll be asked to offer some asset or valuable item as a guarantee of repayment or collateral. The interest rate is usually lower because financial institutions take less risk. The rate will vary based on the amount borrowed and your credit score. If you apply for a small loan, the rate will be higher. A third option is to use your credit card to cover the expenses. You may also apply for a low rate card or a credit card with zero percent during the introductory period. If you have bad credit you can take a look at the credit cards listed here. This is a cheap way to finance your wedding provided that you pay the full amount.
Newly Wed Financial Advice
Even if you used money in your savings account to finance your wedding, it is now time to start planning and organizing your life as a married couple. There are some handy tips for newlyweds. To begin with, it is financially irresponsible to hide any assets that you have. The same goes for any debts (credit card debt, personal loans, student and auto loans, etc.) Sit together and bring all financial statements, accounts, insurance policies, pay stubs, and credit reports. Look at all accounts and assets, including collectibles, valuable assets, real estate, money market and savings accounts, retirement accounts, and so on. Subtract your debts from your total assets to calculate your net worth as a couple. Be honest about your income, financial situation, and financial habits. It is also a good idea to talk about your lifestyle and financial goals. Are you afraid to spend money? Or you tend to overspend? Do you live paycheck by paycheck or always have money in your savings or checking account? These are important questions. Discuss your money habits, dreams, and long-term and short-term plans and goals. Don’t worry if you discover that there are differences. This is normal. It is more important to develop a setup that will work well for both spouses. It is also a good idea to set financial goals, whether it is buying a new home or repaying your debts faster. Talk about your long-term goals as well (saving toward retirement, your child’s college education, etc.) It is also a good idea to have an emergency fund for rainy days and emergencies. You may also want to discuss your expenses, including utility bills, grocery shopping, housing, cable TV, transportation, entertainment, etc. It pays to develop a budget to see whether you need to downgrade or find a better paid job. Track your spending for several months, including bills and discretionary expenses. If you want to buy a big-ticket item, it is important to discuss it. Helping family members and friends in need of money is another topic worth bringing for discussion. Obviously, this depends on many factors, including your budget, debts, lifestyle, surplus income, etc. Look at your insurance policies as well, including your home, auto, life, and other policies.