Wedding is not cheap at all although you try to cut down on everywhere is possible. Cake maker, decoration, or caterer – there are a lot of areas that add up the cost. Research shows that many couples start their married life by paying off their big day debt. Although you have saved a lot of money, it is hardly possible to pay for the wedding outright.
After a certain age, you start saving money for your big day. According to your calculations, it seems like you have enough time to set aside for your wedding, but when the big day comes, you find that your savings are not enough. As a result, you turn to financial institutions to borrow money.
Studies suggest that people borrow money somewhere between €5,000 and €10,000 for their big day. Since wedding loans are unsecured, you do not need to worry about losing your asset. As long as you can afford to pay back what you are borrowing, you can qualify for these loans.
However, banks may not approve your wedding loan if you have a bad credit rating. These loans are unsecured and hence carry a slightly higher interest rate. If you have a poor credit score, it will likely be more difficult to qualify for such loans.
In this scenario, you have only one option left, and that is online lenders. However, it is essential to research the market. Honest private money lenders in Ireland will lend you money at more competitive interest rates. If you still have a problem qualifying for the loan, you should seek other alternatives.
- Secured loans
If your bad credit rating is pulling you back from qualifying for the loan, you should opt for a secured loan. Since you will put collateral, it will mitigate the risk of lending you money despite a less-than-perfect credit score. This is why you will get the loan at lower interest rates. However, remember that you will lose the collateral if you fail to pay off the debt.
- Logbook loans
Logbook loans are also a type of secured loans. While you can put any asset as collateral with other secured loans, logbook loans allow you to put only our car as collateral. These loans are considered a bit expensive loans, yet they carry lower interest rates than unsecured loans.
Note that you will have to transfer your car ownership to the lender by signing the bill of sale. Make sure that you know very well how these loans work before applying for these loans.
- Guarantor loans
If you do not want to apply for secured loans due to the fear that you could lose security, you can take out a guarantor loan. A lender will lend you money at lower interest rates if you arrange a guarantor with a good credit history. A guarantor will enter into the agreement with you, whom the lender can call upon when you fail to pay off the debt.
Well, no matter which loan you take out to fund your wedding expenses, it is crucial that you carefully assess your affordability. Even though you take out secured loans, you should look over your repaying capacity.
If you end up borrowing more than you can afford, you will lose your security and lose your credit score. It will eventually make it harder to borrow money down the line at affordable interest rates.
If it seems like you are running out of money to meet your wedding expenses, you should try to follow the following tips to keep your big day expenses as minimum as possible.
- Set the wedding date after careful assessment
Most of the couples work out how much it will cost them after picking a wedding date. However, a rule of thumb says you should consider how long it will take to save a certain amount of money and then set the wedding date. It will help you save money that you need for your wedding. This strategy will help you start your wedding life without worrying about paying off debt.
- Scrutinize your guest list
One of the best ways to cut down on wedding costs is to be ruthless with your guest list. The more people you invite, the more expensive your wedding will be. When you do not have enough money to organize a grand celebration, you should curtail your guest list.
Invite only those who are important to you. Considering the amount you have to throw at your wedding, you will have to decide the number of guests you can afford to invite. You can reach out to the right figure when you consider decoration, catering, and other wedding-related expenses that immediately go up as the number of guests increases.
- Seek contribution from parents and friends
It is very common to gift the bride and groom on their big day, but you can ask your parents to contribute to your wedding expenses instead of giving you gifts. Likewise, if you have a best friend, you can seek monetary support instead of gifts to prevent yourself from falling off your wedding budget.
It may seem fine to fritter away money on your wedding because this is a once-in-a-life celebration, but it is always sensible to avoid doing so because otherwise, your married life will start with the pressure of paying off debt.
- Keep tabs on your spending
The wedding budget can easily break even though you are trying hard to cut down on your expenses. You should keep tabs on your spending, so you do not fall off your budget. You can use apps to see if you are within your spending limit or not.
There can be various reasons for not qualifying for wedding loans, but you can consider alternatives. However, it is suggested that you should try to cut your wedding expenses, so you do not end up borrowing more than your affordability.
