Wedding loans are becoming more common but should you take one out?

A wedding is a dream come true, right? You plan for months, you build up the most perfect picture in your mind, and you can’t wait for it to become a reality. All seems well in the world… until you realise just how expensive weddings can be! In fact, the average wedding in the UK will set you back around £27,000, and we’re not sure about you, but we definitely don’t have that cash ready and raring to go. Because of this, more and more people are choosing to take out a wedding loan to pay for their dream day. They get everything they want without putting a strain on their relationship or their personal lives, but they also have the pressure of paying back the loan. So, should you take one out?

The advantages of a wedding loan

Of course, we don’t need to tell you the first advantage – because it’s simple! You get the wedding you have always wanted! If you don’t have the money in the bank to pay for the venue you have been dreaming of since you were a child, the band you have had your eye on for months, the food that’s been making your mouth water ever since you tasted it at the wedding fair, it can put a downer on your nuptials. Although we know that marrying the love of our lives should be enough, you (hopefully) will only plan a wedding once, and it needs to be perfect. With a wedding loan, you can normally borrow between £7,500 to £15,000 to put towards your big day. This takes off a huge amount of pressure from you as a couple, as finding a few thousand to make up the cost is much more attainable than footing the whole bill at once. Another advantage of a wedding loan is that many companies offer a fixed repayment system – normally over the course of one to five years. This means you can continue your wedding budget even after your ‘I do’s’ as you will know how much you need to repay every single month. As if that wasn’t cool enough, there are also many companies who offer a ‘cooling off’ period when you start this repayment process. They know that newly married couples have little money to their name, and will normally give you two to three months before you need to start your repayments. How cool is that?

The disadvantages of a wedding loan

One of the biggest disadvantages of a wedding loan is the fact that it is exactly that; a loan! This means that the money you are spending is not your own – and that you HAVE to repay this money. While it can be exciting to shell out on the most expensive wedding to create the perfect day for you and your partner, it’s important to remember that the more you spend, the more you have to pay back. What’s even more important to remember is that you will always have to pay back more than you took in the first place because of interest rates. It’s not in a company’s favour to give you money for free, and they will always be looking to make a profit from your loan. Normally, wedding loans will come with a 5% interest fee – but the more you borrow, the higher the interest rate will be. Another disadvantage of a wedding loan is that you may not be eligible for one. This is because these lenders check your credit score before lending out the money. If you have a low credit score and have struggled in the past to repay your debts, it would be unwise for a company to loan you money, but also for you to enter into another loan.

So, should you take out a wedding loan? In our eyes, it’s always better to use your own money when it comes to planning your wedding day. After all, it’s a day you want to remember for the rest of your lives – and not one you want to forget when you have debt collectors knocking at your door. Nowadays, there are many credit card companies that offer 0% interest loan rewards. If you really have to borrow money for your wedding, it may be better to go down this route.

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