Weddings all over the world are known to be as grand communal celebrations. We all want this once-in-a-lifetime event to be the perfect one so that we will cherish this for the rest of our life. But arranging such a grand ceremony can be expensive. Latest data revealed that the overall cost of a wedding has increased significantly in recent years and has reached a staggering £32,000 in 2018. Most of the couples who want a grand event to tie the knots either have a strong financial plan or they consider taking out a personal loan for a wedding to fulfil their dreams. 62% of couples save up for their wedding expenses, while 44% of couples seek financial assistance from their family and relatives. Another 38% of couples use their disposable income while 14% use their credit cards to manage the cost of the expenses. 4% of couples opt for a bank loan to fund their wedding expenses. Amidst all these, Wedding Loans in the UK have remained a popular choice of couples who are planning their grand day.
What are Wedding Loans?
Wedding loans are nothing but a type of personal loans that can be borrowed for a period of 12 to 84 months. This gives the borrower enough time to repay the loan easily without much hassle. Moreover, a borrower can borrow an amount without using any of their valuable assets as collateral. Also, the borrower doesn’t have to arrange a guarantor to co-sign the loan application. A few lenders also accept profiles with a bad credit score. Such loans may have a high rate of interest due to their score but if the borrower repays the loan on time and in full, their credit score may improve. Therefore, these loans are often categorized under unsecured personal loans.
Why Should You Use a Wedding Loan?
The answer to this question lies behind another question that is – how much you really can afford to spend on your wedding? Take into consideration factors like how much have you saved up for your D-Day, how much your parents are going to contribute, and even if you take out a personal loan how are you going to repay the loan? It’s true that if you default on the repayments, none of your valuables is at stake. However, your credit score will be damaged severely if you do not repay the loan on time and this will reduce your chances for taking out a loan for the next time.
Should you go for a Wedding loan in the UK?
Go for a wedding loan if you have a solid repayment plan. If you know that you can easily afford to repay the amount that you have borrowed, then choosing a loan to support your ideas for a lavish wedding ceremony can be considered.
Advantages of Wedding Loans
There are several advantages of a wedding loan and some of them are listed below:
- Unsecured: These are unsecured loans. That means you do not have to worry about any collateral damage if you default on the repayments. Your property and valuables are safe and not at stake.
- Available Online: You do not have to visit the branch office and wait in a long queue to apply for a loan. That is why sometimes these are known as Online Personal Loans. You can visit the website and apply for a loan from the comfort of your home.
- No Guarantor: You do not need any guarantor to vouch for your loan application. Apply for a loan without any guarantor online.
Disadvantages of Wedding Loans
Most of the couples avoid taking a wedding loan due to one big reason that is stated below:
- High-Interest Rate: This is the major disadvantage of these loans. As it is unsecured and doesn’t need any guarantor, there is a risk involved for the lenders. And that is the reason the rate of interest for this loan is a bit higher.
Alternatives to Wedding Loans
If you do not feel like going ahead with this option to finance your wedding, you may consider the below mentioned alternatives that may help you in planning the most important event of your life – the way you want.
- Savings: You need to make a budget and save money if you want your savings to play a big part in finance. Set aside some amount of money every month and reach your target. However, this is only possible when your wedding has some time and is not planned in the very next month.
- Crowdfunding: Ask your friends and family to contribute towards the event rather than giving some expensive gifts. Discuss this option with them and find out a solution that works for everyone.
- Slash your budget: Cut down unnecessary expenses that generally add up to a big amount. List out everything and see what amount of money is being spent on what category. If possible, cut down the overall of the budget and try to fit in.
If You Have Decided to Borrow a Wedding Loan in the United Kingdom
Borrow a loan wisely – that’s the key to responsible borrowing. Evaluate how much you exactly need to borrow. The basis on that search for a loan that will suit your financial requirements. Always remember to borrow money from a financial firm that is registered by the Financial Conduct Authority (FCA) to avoid entering into scams. Consider the below-mentioned points to choose wisely:
- Evaluate how much you need to borrow
- Know the rate of interest
- Know the Annual Percentage Rate (APR)
- Determine the repayment tenure
- Calculate the overall cost of borrowing
- Find lenders or credit brokers
- Compare your options
Making your big day picture perfect is not difficult if you have the right financial support. Create a budget according to your pocket. A wedding loan can definitely help you plan your big day but repayment is an important element that should be taken into consideration. Finding the perfect Wedding Loan in England or any other part of the UK is not challenging anymore. All you have to do is – apply for a wedding loan with Oyster Loan and fill an easy and simple application form online.