The last thing you want to end up with after your wedding is debt. You may consider taking out a personal loan to finance your wedding. It helps you pay for any wedding-related expenses, such as booking a venue, decorations, catering, and the bride’s and groom’s wedding attire, etc. You don’t need to depend on savings alone. Instead, save it for the unexpected cash requirements.
Personal loans are a great choice to hit any wedding goal without waiting. For example, if you need more wine to support the guests’ needs, you can get it now. You don’t need to worry if you lack enough cash now. Instead, a short-term loan in Ireland may help. You may use it to finance the wedding wine needs within 30 minutes. It takes away any stress related to cashlessness.
However, you must be conscious while taking the loan and paying the instalments. A minor mistake or missing a payment would lead to paying more later. Thus, the blog lists the best ways to avoid debt while financing your wedding.
Why do individuals overspend on weddings?
According to a recent study by Barclays, “about two-thirds of the couples overspend on their weddings. The popular reason, according to the study, is:
- The prices of venues, catering, flowers and entertainment are rising. It keeps rising every year, making it unaffordable for most couples.
- Most individuals overspend to create hype on social media. The pressure to host a perfect wedding leads to debt.
- Last-minute expenses expand the budget unexpectedly.
What happens if you use your savings to fund the wedding?
Usually, it is not recommended to use up your savings pot. It is because your wedding life is the beginning of new goals and lifestyle achievements. You and your partner must have some savings to achieve these goals later. Here is how it may affect your wedding life:
- You may struggle to buy a house with a mortgage without basic savings. It may take years to build that much to provide a deposit.
- Starting a family means expanding the budget, lifestyle expenses and hygiene maintenance. You cannot overlook the responsibility of a kid and the things that follow. Savings may help you assist with a new lifestyle.
- Limited financial flexibility and savings for meeting day-to-day needs may strain your relationship. It may lead to unsettling quarrels every day.
5 Strategies to avoid debt after financing the wedding
The first thing is- never take on any loan if you don’t feel the need to. It’s your wedding, and hence your rules. Do not take any debt under pressure. Always prioritise what you can afford before checking the wish list. Here are some strategies that might help you avoid collecting unnecessary debt and enjoy your wedding without financial worries.
- Create a realistic wedding budget
It begins with understanding the key expenses and your basic monthly savings. To create a realistic one, always prioritise the must-haves of the wedding. It may include transportation, accommodation, wedding venue, dress, etc. Avoid investing too much in decorations and introducing too much catering and drinks.
This is especially true when the budget is low. Also, try to be flexible with non-essentials. It may mean planning a wedding on a weekday rather than a weekend. It will prove more affordable than the latter one. Alternatively, always track spending when planning a wedding. You can use a spreadsheet to track expenses and stay within the budget.
- Always prepare a contingency fund
It is a must-have for any couple planning a wedding. Having cash flexibility is necessary to plan for unexpected expenses. It prevents one from panicking at the last moment.
Moreover, having one also helps tackle any issue that you might fail to plan for. For example, you did everything, but the funds fell low on the catering part. Don’t worry, and you can use a part of the contingency fund if required to meet the needs.
- Choose the right way to finance
You can pay for the wedding expenses in multiple ways. Check whether you have enough savings to support current and post-wedding life requirements. Next, identify the prospects of getting help from the parents or friends.
Alternatively, check personal loans and credit cards to finance the wedding requirements. Out of the two, personal loans are a cheaper and more flexible way to deal with wedding needs. It is because it gives you the freedom to cover the cost and pay in instalments.
You may think- Can I get a personal loan despite bad credit? Well, yes, you can get it for any small and medium-term requirement.
For example, if you need cash urgently to fix a wardrobe malfunction, check loans for bad credit with instant approval in the Ireland marketplace. You may get quick cash despite bad credit if you can afford the payments. Instant personal loans prioritise individuals’ affordability over credit score. Thus, individuals with consistent income and relevant proof of it may qualify.
- Borrow a feasible/affordable amount
Most individuals who enter debt after marriage commit the mistake of borrowing more than they can repay later. It leads to high interest payments and other loan costs. Thus, one must identify the need and financial affordability. How much can you afford to repay comfortably?
For example, if you need €12000 for wedding requirements, but you qualify only for €8000, don’t borrow more than this. You can use a free loan cost calculator to determine the costs. It may not provide you with the exact but the approximate costs. Thus, you get the idea of how much you should borrow for your needs.
- Pick a comfortable repayment term
You can choose a repayment term within which you can pay the loan comfortably. You don’t need to stick to what a loan provider offers. Instead, determine and get one within which you can repay the dues comfortably. It helps you repay a fixed and affordable instalment every month. Thus, it limits the chances of missing a payment or a loan default.
Bottom line
These are some of the best ideas to finance your wedding without going into debt. Identify the best and cheapest way to finance your wedding. Explore the loan quotes and get one with the most affordable tenure. Re-assure the amount requirements, and can you afford the payments? If yes, choose a comfortable repayment period to pay off the dues. It reduces the chances of debt-trap and loan defaults.
