Can I Take Personal Loan for my Wedding?
Getting married soon? If that is a yes, you may notice that you and your partner would have to contend with a lot of bills to get everything working faultlessly throughout your wedding day. For some couples, they would not have many problems with this because they planned their wedding in advance and saved some money for it.
However, if you did not plan your wedding fund in advance, you can opt for a personal loan to fund your dreaming. But, should you borrow or not?
Experts would immediately stop you from your thoughts because of the following reasons:
- Use the Loan to Build Your Assets
A lot of people would stress that personal loans should only be used when you are trying to build your assets rather than use it for an expense such as weddings. When you use it for an expense, you would find yourself owing more than what you actually borrowed.
- High Interest
Personal loans come with a very high interest rate, making it one of the most expensive means to get money. A few banks offer low effective interest rates for short tenures, while moneylenders are capped at 4% per month when it comes to their interest loans. Considering this fact, it is ideal not to use it for your wedding.
- New Life Shouldn’t Start with Expenses
Now that you are starting a new life together, it is best you start it without any expenses. Think about the things you will need to save up for like your baby, new home together and other things. Use the personal loans for those instead.
- Wedding Expenses A Plenty
Weddings are a magnet for expenses. You may add a lot of things at the last minute and in some instances, you might change some details at the last minute.
Tricks to Reduce Wedding Expenses
There are many ways to get past the problem of high wedding bills to reduce the possibility of getting a personal loan to fund the wedding. For many, it is common they select they select the most expensive pieces for their wedding because they believe it is of high quality. However, it is not always the case as some expensive items may be flimsy.
Some of the items would only be used once so focus on spending more on things that need more funds.
Here are some tips to help you reduce your wedding expenses:
- Don’t ask only one supplier for your wedding and ask others about their offers. Select the one that is within your budget or combine two suppliers. If the supplier offers all the things you will need for the wedding, check if they have set packages for cheaper rates.
- Ask your friends who recently got married about their experience and ask advice on how they saved money for their nuptials and which suppliers they used.
- Learn how much you are inviting and check the prices of all your wedding venue options when it comes to weekend or weekday events. Get the best rates and plan in advance.
- For your wedding reception, check all the possible venues and check which one is cheaper. Some of these venues can be designed like a high-end venue if you plan accordingly.
- Instead of getting a professional photographer to do your prenuptial photos, ask a friend who is handy with a camera to do it for you.
- Book your hotels early so you can save up on hotel fees. You should also book your honeymoon package early so you don’t need to worry about high fees.
- Check the rates for holding your weddings overseas. It might be cheaper than holding it locally.
- Ask your talented friends and family to be your wedding entertainment. If they agree, you can save quite a lot of money on wedding entertainment fees.
- As much as possible, pay your expensive bills with a credit card. If you have a cashback credit card, you can recover some of the funds you used for the event.
Still Going for the Loan?
If you really want to make the date the most special day in both your lives, especially if your partner has a dream wedding fantasy you want to grant or it is something you really want to do, then you can avail a personal loan.
If you are dead set on getting a personal loan, you need to make sure that you are financially stable because this will help you pay off your loans fast and easy.
To check your financial stability, you must check the following:
- Your credit history must be strong and up-to-date. You can check your credit history by requesting online from Credit Bureau Singapore or simply checking if you pay your bills on time.
- You are working full-time or have a steady means of income. Moneylenders or banks would take a look into how long you have been working when it comes to determining your loan risk.
- You should not have a lot of debt present.
- You must also have your own emergency fund which is stable enough.
If you are good in all these points, you can then get your applications sent to a bank or a moneylender. Of course, you need to make sure that the interest rate on the loan you are planning to get is low so you don’t have to pay than what you borrowed.
You should also determine how much you will borrow and only borrow enough to cover all your expenses.
Getting more would only tempt you into selecting more expensive pieces for your wedding even if you can get something similar for a cheaper price.
Weddings are an important date for any couples’ life and it should be one to remember. Do not let it stress you very much, especially when things don’t go your way like having small funds to make your wedding the dream you always wanted it to be.