Weddings are really some amazing moments in our life. If your personal savings can’t carry the total cost, we examine whether a loan is a good idea for you or not.
If you’re looking into getting married, you won’t be stunned to find that weddings can be really expensive. In fact, the average wedding now stands at around N14,000,000.
While you can find ways to reduce the cost, many couples want it to be extravagant, which can be expensive to afford, factoring in just your monthly income savings.
Can I use a loan for my wedding?
Yes, couples can use a loan to pay for their wedding cost. There isn’t one particular type of loan which is suited for weddings, it largely depends on your situation and financial stability. You could apply for a personal loan, a secured loan, or a guarantor loan to help pay for the cost of your wedding.
It perhaps could happen that you’ve almost reached your wedding budget and you need a little money to help you reach the desired height. Or perhaps you might be looking for a loan that covers the cost of your total wedding cost.
Take a genuine look at what your savings can cover with your own and what it can not cover. Is there a way you can reduce the entire cost? Once you have concluded exactly how much money you’ll need, you can start to look for wedding loan lenders that would agree to give you their money.
Disadvantages of using a loan for a wedding
While using a loan for your wedding can be the only possible option available, there are things you should consider. For example:
• Longer repayment terms
While the loan will make your wedding cost more affordable at the moment, have you thought about how it will be after your big day? Make sure you’re totally fine with the period of your loan contract before you apply for one. And also determine how it might affect your other plans for the period.
• Fixed repayments
Unlike a credit card, you’ll need to repay the same amount monthly. While this can aid with budgeting, it can be stressful if you’re hit by other costs during repayment month.
Advantages of using a loan for your wedding
On the other hand, many advantages come with applying for a wedding loan:
• A fixed interest rate
As you’ll have fixed repayments, the amount of interest you pay won’t change for the period of your loan. That means you won’t be caught out by rising interest payments as well as with a credit card.
• Easy to budget
With the fixed payments rate, you’ll be able to easily plan the costs of your wedding. With a credit card, on the other hand, you might be tempted to spend beyond your available budget cost – which can mean you will have to pay off your wedding cost for longer than you would expect.
• Receive the cost upfront
With a loan, you’ll get the total money you need for your wedding cost upfront – so you can get to start planning and executing your wedding plans.