Money for Matrimony: Wedding Loan Versus Savings

Will you pay for your wedding with savings or a wedding loan? Loans for weddings are becoming more popular. Before you decide on whether a wedding loan or savings will work better for you, consider the pros and cons of each.

Pros of Wedding Loans

A wedding loan can offer you the freedom and flexibility of creating the wedding of your dreams. You can choose the options that you would not otherwise be able to afford, and you can make your special day more memorable. You can purchase higher quality items for wearing and decoration, and have the wedding reception is a more elegant facility.

There will be more space on your credit cards and more immediate cash in the bank for your other needs and expenses with a wedding loan. Your personal assets will still be available for you to use, as with unsecured wedding loans, no collateral is needed. You can easily cover emergencies with cash, and you won't risk losing your property.

Pros of Savings

If you use your own savings to pay for your wedding, you don't have to worry about spending too much. You will be able to focus on what is most important, and keep from getting into debt. You wedding bills will be limited and all covered, so that you can get on with your new life after the wedding.

Cons of Wedding Loans

Debt and marriage are a poor mix. Starting out the marriage with a massive amount of debt resulting from the wedding can cause mental, financial and emotional strain on the marriage.

Payments will have to be made on your wedding loan monthly. This can reduce the amount you can borrow for a house, car or other purposes as this payment will be deducted when calculating your available income.

Depending on your credit history and the amount that you borrow, the interest rates on your wedding loan could be high. If you only need to borrow a small amount for the wedding, such as less than $5,000, you may be able to use credit cards and pay them off faster, for less interest.

Cons of Savings

You may not have all of the money that you need to create the wedding of your dreams. It may be necessary to sacrifice certain preferences.

If you use all of your savings, you won't have any let for your new life after the wedding. Cash flow will be incredibly tight, and there may not be enough funds available to cover emergencies.

There are good points and bad points to consider regarding savings and a wedding loan. Make your decision carefully

 

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