Ginko Financial

The cost of a wedding just seems to be going up and up as couples are becoming more demanding in what they want from their “big day.”  It’s not cheap. They want a church, expensive bridal gown, bridesmaid dresses, entertainment and then of course there’s the honeymoon.  In the past it was the father of the bride that paid for all of the expenses but nowadays more couples are opting to pay for the costs themselves.  With the average cost of a wedding being in the region of $20,000 it’s no wonder people are taking out loans to pay for their big day.

Before you even think about taking out a wedding loan you really ought to sit down and figure out all the costs.  There are so many different expenses to factor in and you don’t want to end up in a position where you have take out a loan that isn’t big enough.  On the other hand you don’t want to take out a loan that is too much.

A lot of people feel that starting married life with a big debt is a bad idea.  There are many fights that are fought over money, especially when you end up with unexpected expenses such as medical care or home repair.  So many marriages end in divorce because of debt worries.

Of course, it’s essential that you make up your own mind.  For many couples a loan is seen as a great way to afford the most brilliant day of your life and with a bit of luck it will be your one and only wedding ceremony.  Knowing what your future spouse is like with money is important because people can have very different attitudes to money and debt.  Some just think you can borrow what you like in order to have a comfy lifestyle but then end up in serious debt and even bankrupt.

Spend time thinking about your other expenses for a mortgage, insurance, car repayments and such like.  You want to make sure that you can pay for all of these things in addition to your wedding loan.  Work out what you can easily pay per month and try to take out a loan that you can repay in about 3 years.  There’s no point in paying off the debt 20 years into the marriage.

When you are looking to take out the loan you will find that there are loans that are secured and loans that are unsecured.  If you take out a secured loan then you will be using something like a car or home as collateral.  So if you don’t keep up your repayments you could end up losing your car or home.  By taking out an unsecured loan you won’t have to worry about this happening.

Taking out a loan for a wedding is relatively reasonable in terms of interest rates however you should of course do shopping around to make sure you get the best deal.  You should also find out if there is an early repayment fee as you might come into some money and simply want to pay the debt off.

Although there are companies out there that specialize in wedding loans they aren’t your only option.  You could look at refinancing your mortgage or a personal loan.  If you have bad credit you ought to have a look at that first.  So get copies of the credit reports from TransUnion, Experian and Equifax.  If you see any errors then there’s a good chance you might be able to increase your credit score simply by notifying the agencies of the problems.

Another alternative if you have poor credit is to apply for a loan from a lender that doesn’t do any credit checks.  However bear in mind that normally there will be a higher rate of interest for those with bad credit going down this route.

If you get turned down for the first loan you apply for you ought to ask them what the reasons are.  This way you can work to resolve any issues.  Also, before you take out a loan, make sure you don’t go doing anything that could cause your credit rating to go down such as applying for a bank account or loan.