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The decision to get married to the person of your dreams is one of the major life events. Thinking about choosing a wedding loan is common as you need funds to cover the costs of the wedding. According to Bridebook.co.uk’s National Wedding Survey 2018, the average cost of a wedding has reached an all-time high of £30,355. Also, 65% of couples go over their wedding budget, another 68% of couples were worried about the costs of their wedding. If you are already engaged and concerned about the costs of tying the knot – then you must weigh the pros and cons of a wedding loan. Knowing all the good and the bad will help you to make a better decision.
Rising Costs Associated with a Wedding in the UK
Wedding expenses have risen significantly over the past few years in the UK. Undoubtedly, there are various ways to cut down on the expenses, but couples generally want a lavish wedding that they and their dear ones will remember for the lifetime. Such expenses need huge funds and to fill the shortfall of funds, they choose Wedding Loans that help them cover the expenses to an extent. A few rising costs and facts that were revealed in the survey are listed below:
• The average spend on a wedding venue has risen up to 19% from £5,189 to £6,152.
• Cost of suppliers has increased by 12% on an average in the UK.
• Average spend on wedding food and drink has risen from £4,727 to £5,862.
• A 10% increase has been observed on the music and entertainment category as the average has risen from £941 to £1039.
• 2% increase, i.e., £318 to £323 has been noticed for the average spend on a wedding cake.
• A whopping 10% increase in the average spend on flowers has also been observed taking the number from £777 to £858.
When a wedding loan is the best decision?
Taking a loan is not difficult but repayment can be a challenge for most of us. A wedding loan is a type of personal loan that can be taken without keeping any valuables as a mortgage. Also, these are Wedding Loans without Guarantor. That means you do not have to arrange a co-signor to avail the loan. The repayment has to be done by the borrower in monthly instalments over several months. Generally, credit providers offer a fixed rate of interest on the loan and that makes the repayment easier for the borrower as the monthly repayment amount becomes predictable. A wedding loan is the best decision to cover the expenses of your dream day when:
• You are sure of the repayments
You need to be sure about the repayments. Before taking the loan, calculate how much you have to repay and will you be able to repay the loan amount affordably. Failing to meet the repayments will result in a damaged credit score.
• You have a good credit score
The rate of interest for these loans vary from lender to lender. If you have a good credit score, you may get affordable offers from lenders. But with a poor credit score, the chances of receiving an affordable offer is likely to be less due to the risk involved.
• You do not need a big amount
If you are falling short of a few thousand pounds that may help you to plan the event smoothly, then this loan can prove to be beneficial. Relying on the wedding loan to cover the entire wedding cost may become expensive.
• You need money immediately
You can avail Wedding Loans in the UK almost immediately as the complete process of borrowing takes place online. Visit the website of the lender or credit broker and apply for a loan within minutes. The moment they receive your loan application, creditworthiness and affordability will be checked by the lender and on the basis of that, the decision will be provided. All these happen just within a few seconds. So, you do not have to wait around for a decision for months on end.
When a wedding loan is the worst decision?
The decision of taking out a loan can turn wrong if the borrower fails to manage it efficiently. Moreover, the financial circumstances of individuals vary from one to another. Everyone has a vision of their dream wedding and they do not wish to compromise anywhere – that is completely understandable. But if you do not know how to tackle a debt wisely, then saying your vows under the altar may dig a deeper hole in your personal finances. A wedding loan is the worst decision to cover the expenses of a wedding when:
• You are not sure of the repayments
If you do not have a regular and steady source of income, then getting hitched by adding a pile of debt on your shoulders is big no. The idea of beginning a new phase of your life with debt is alarming. If you do not know how you will manage to repay the loan, do not take out a loan.
• You already have multiple debts
If you have already taken up a few debts to manage the wedding expenses, try to slash down your budget. Do not add on new debt as this might turn out to be a financial disaster. Try to scale back a bit on things that are not important such as sending out invitations to each and every one. Invite people who you know and you are really connected to.
Conclusion
Taking on a loan to get hitched in a fairy tale style is not foolish until and unless you have a financial plan in place. With a proper plan and management, you can easily repay the loan without hurting your credit score. A decision can altogether change its direction basis on the way you treat it. If you can manage a loan by making timely repayment then it will not hurt your finances or report. Always remember, setting a budget for a wedding is equally important. Try to stick to the budget so that you do not end up overspending.
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