- Interest, interest, interest! By taking out a loan for your wedding, you will be paying interest on the loan for years. For example, if you take out a 5-year loan for $15,000 at a 10 percent interest rate, you’ll end up paying over $4,000 in interest over the course of the loan. Is splurging for your weddingSpecial Day really worth an extra $4,000?
- You’ll be starting out your marriage in debt. Money troubles are a common cause of relationship stress. Do you want to start off this new and exciting chapter of your life with a monthly loan payment for the next three to five years?
- Existing loans make it more difficult to qualify for new loans. Are you thinking of buying a new car or even a new home after your wedding? When a bank considers giving you a loan, they will look at your existing loans to determine if you can afford the new loan. If you have a lot of existing loans, the bank ount you want, or they may deny your loan altogether.
- They could make you spend more. Getting the money for your wedding loan in your bank account could make you feel flush with cash. You may feel more comfortable upgrading your floral arrangements, choosing that dress that’s out of budget or inviting a few more people to your wedding. All of these upgrades add up.
The decision to take out a loan for your wedding is one you must make with your partner, because it’ll affect financial decisions on your marriage later. It’s important to talk about whether or not that financial burden is something you want to deal with when you get back from the honeymoon. Below is a list of the ways to cover the costs of a wedding with loans. (Again, this is just to inform you on how it’s done-we don’t recommend it!
The idea behind a home equity line of credit is that you borrow against the mortgage on your home
A ton of Internet loan companies have sprung up over the past few years, and most offer crowd-sourced loans. Here’s how it works: Online investors front money for you once you’ve been approved by the company in much the same way you’d be approved by a bank. Then you pay them back, including interest, in the same way you would a bank. Sites like Upstart will have you safely fill in your information, then bring up the types of loans (and the personal loan rates) that you qualify for. « Unless you can pay off the monthly balance immediately, credit cards are not a great option for long term debt, » says Jungwon Byun, head of growth at Upstart. « The Upstart platform is smart; we use education and employment in addition to credit history to determine the APR. The entire process is also online and very simple, making it a fast and easy way to borrow. » If you’re interested, you can move forward with https://rapidloan.net/installment-loans-mi/ the application process for your wedding loan. If not, just stop there
A good site (read: trusted) for online wedding loans is Upstart
This one is only for homeowners and usually for parents paying for their children’s nuptials. Again, though, it’s not a good idea. Neither the financial experts nor we would recommend doing such a thing. « I’ve seen parents take out a home equity line of credit, which is basically borrowing against the value of your home, » says Lyons Cole. « Especially for a lot of parents, if you’re throwing a wedding, you’re probably mid-40s to 50s, you’re not that far away from retirement, you probably just put your kid through college-there are so many expenses and pressures put on a parent, and chances are you need that money for something else.