Why a Wedding Loan Is Not a Good Idea
The cost of weddings has gone so high in recent years and, unable to finance the wedding they desire, some couples are now taking out personal loans. In other situations, some couples’ parents are using home equity lines of credit to finance their children’s weddings. While it is desirable to have a wedding whose greatness people will talk about for years, using credit to finance a wedding is not a prudent thing to do.
Borrowing against your mortgage
Some of the most lavish weddings you might have seen are usually financed by the couple’s parents since most young people getting married could only have started working and might not have saved enough to afford such weddings. Financially challenged parents who decide to borrow against the mortgage on their homes to finance their children’s weddings might think they are doing them a favor but this is certainly not a good idea.
For starters, by the time the children are getting married, most parents will be approaching their retirement age and their earning abilities will most likely have shrunk. Consider too the health complications that might come with advanced age and the many other pressures that aged people have to endure and you discover that a wedding loan should not be included in that list.
Secondly, great and important as it is, a wedding is a single day event. It might not therefore make much economic sense to splash money you do not readily have for such an occasion and then keep paying for it for several years.
Using personal loans
Some couples also go for personal loans which have become very readily available for people with good credit. The loans are also processed fairly quickly and some internet lenders can have the loan processed in less than a week.
When you use a personal loan to finance your wedding, you are actually spending money that you do not have. For a young couple, this might not be the best thing to for various reasons.
If, for instance, you took out a loan that you’ll repay in about 3 to 4 years, it is important to remember that more urgent financial needs are likely to arise before you clear the loan. You might get your first child during the repayment period and you might have to reconsider delaying more critical issues such as getting a mortgage. Again, the future might not augur very well for a couple that begins its marriage life in debt.
Rather than use loan to fund a wedding, a couple should consider saving for it or explore affordable alternatives. Incidentally, you can have a fantastic wedding without spending too much.
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