Do you start imagining your dreamy wedding sequence whenever you’re invited to weddings? We’re all guilty of taking inspiration from others’ weddings.
When we think of weddings, the only things that pop up are the venue, the dress, the food, and the décor on your special day. A wedding, however, goes way beyond just the wedding day. There are a plethora of things that need to be planned to make that one day of your life, unforgettable. And yes, by planning we mean the hefty expenses that’ll come your way!
But there aren’t many special days as big and exciting as this one. So how do you keep up with the expenses while planning your dream wedding? Can COVID-19 come in the way? A wedding loan can help you manage these expenses.
Learn more about how a wedding loan can help you finance your wedding.
What is a wedding loan?
As of 2020, the number of money that people are spending on their wedding averages to £24,000. Now, the average income of a UK household as per FYE 2020 rounds off to £30,800. Evidently, given these figures, exhausting your savings to finance your wedding may not be a smart financial move.
The average cost of weddings seems to be increasing each year. Call it peer pressure or the influence of social media, but couples are willing to spend thousands of pounds to make their big day memorable. Even if you have friends and family pooling in some money, you’ll have a tough time fund your wedding with this money alone.
A wedding loan can help you manage these costs. It is a personal loan that eases your financial stress while planning a wedding. Wedding loans allow you to spread the cost across a set period, over pre-determined monthly instalments. Plus, your wedding day is not the only expense you need to fund when you tie the knot. Marriage brings many changes to your lifestyle. You might want to use your savings to create a better lifestyle for yourself and your partner instead.
But taking out a wedding loan should not be an overnight decision. You should take some time to fully understand the product. Borrow only what you can afford and plan your repayments well in time.
How does a wedding loan work?
For someone who doesn’t have abundant savings, wedding loans can prove to be a convenient option. Wedding loans are typically low-interest personal loans that are payable over fixed monthly instalments.
Most personal loans offer fixed interest rates, but some lenders offer loans at variable interest rates. Pre-determined rates help you organize your repayments because you’ll know how much you’ll have to pay each month.
So, work out the amount of money that you want to borrow, keeping your affordability in mind. Then, make a tentative monthly budget and see if there’s room for loan repayments. Also, check your credit report before applying for a loan. Credit report discrepancies are common, so if you come across one, get it rectified to give your score a boost.
Once a lender approves your loan application, you can use the funds to finance pretty much everything. But ensure to make timely repayments. Defaults can have serious repercussions.
What all can a wedding loan cover?
When you’re about to get hitched, everything starts revolving around the wedding day. But to make the day eventful, there’s a lot of activity in the background. Making a comprehensive task list will surely help you stay organized. Along with this, research some prices and deals to fund these costs. These expenses include (but aren’t limited to):
- Wedding venue and entertainment (music, special appearances, etc.)
- Catering – appetizers, meals, and the wedding cake
- The bride and groom’s attire
- Wedding rings
- Flowers and decoration
- Registrar fees
The maximum amount of money that you can borrow will vary among different lenders. How much they agree to lend to you will depend largely upon your monthly income and credit history. Usually, lenders set an interest rate for your loan based on your creditworthiness. Thus, if you’ve demonstrated responsible credit behavior in the past, you’re likely to get loan offers with more competitive interest rates and favorable loan terms.
What to do if your wedding is scheduled during COVID-19?
If you had planned a 2020 wedding, don’t lose hope just yet. It is, certainly, a very ambiguous phase for couples who invested months of planning into their wedding. Here’s a list of things you can do if your wedding is planned during Covid-19:
- Analyze your finances and reassess priorities. Has the pandemic affected your income? If yes, a wedding loan can help you cope with the costs involved.
- Create a budget and allocate money to each task judiciously.
- Seek a wedding loan to cover your wedding’s cost. You’ll require your savings after the wedding too. Don’t tap into your savings and spend a large chunk.
- If you’re going ahead with the wedding, stick to the ‘30 guests only’ rule. This will surely aid in reducing costs.
- If you haven’t already done it, get wedding insurance. Sure there are loopholes, but this might come in handy if something goes wrong on the wedding day.
- Look for wedding suppliers with a contingency plan in place, just in case of a cancellation.
How can a wedding loan from Oyster Loans help?
If you want to make your wedding day unforgettable, but don’t have adequate savings, consider a wedding loan. A wedding loan can help ease your financial stress. As loan as you use the money responsibly, a wedding loan can help cover the expensive services. A wedding is a costly affair. A wedding loan can help you refrain from exhausting all your savings on the big day. After all, you do need adequate funds once you start your married life. Find your ideal wedding loan at Oyster Loans and turn your dream wedding into reality. The only thing to remember is that you should use your wedding loan responsibly and repay the loan amount in full and on time.