Three Things to Consider When Taking Out a Wedding Loan
You’ve set the day for your big day, and your planning is in full swing. There’s just one problem—the costs of putting together the wedding of your dreams keeps mounting, and you’re not sure you will have the money to cover your expenses. Never fear—a wedding loan could be just the ticket to a worry-free wedding day. But with so many loan options available, where do you start?
Selecting the right type of loan. Most lenders provide wedding loans in the form of an unsecured line of credit or a traditional bank loan. With an unsecured line of credit, you are given access to a set amount of money, but you are only required to make payments on the amount you use. On the other hand, traditional bank loans disperse a set amount of money into your bank account, and you must immediately begin making payments on the amount you borrowed. A bank loans also carries a time limit for repayment, which is often between 3 and 5 years. The right option for your wedding loan will depend on your personal financial state, as well as your potential ability to make loan payments moving forward.
Covering all of your costs. In addition to your current financial state, one of the most important considerations to make when taking out a wedding loan is exactly how much money you will need. This may sound like a simple task, but once you start analyzing your individual costs, it can get pretty overwhelming fairly quickly. The best plan of action is to sit down with your significant other and go down a wedding preparation checklist. For each item on your list, place an estimated or budgeted dollar amount you can spend on that part of your wedding. When you are estimating expenses for guests, try to think of an ideal number of people you would like to invite, as well as a more realistic figure. Doing this will give you an idea of how each item will impact your budget and help you find areas to cut costs if need be. Ultimately, assessing the individual costs of each aspect of your wedding will give you a better idea of how much money you may need to borrow, as well as keep you from borrowing too much, which would mean higher payments.
Talk to an expert. If you’re having trouble figuring out your wedding expenses, or you’re simply getting overwhelmed with planning in general, it’s ok to ask for help. From family members to professional planners, you have options for advice and direction. Wedding planners are experienced at coordinating weddings based on a number of factors, including a client’s budget. Working alongside a wedding planner, you can determine all of the details that need to be managed and the cost of each aspect of the wedding.