The Ultimate Wedding Loan Survival Guide

Do you want to marry this year?

Funding the nuptial is a challenging feat. According to the most national wedding survey by Hitched, “The average cost of a wedding in the US stands at $29,000”. It is 8% above the wedding costs in 2021.

Unless you have that much money upfront to finance the wedding, analyse other financing ways. On average, it takes around 18 months to plan a wedding. Moreover, Brits could only save $105/month towards the wedding, according to money.com statistics. As per this calculation, it would take around 10 years to plan a wedding costing $27000.

Can you wait that long to marry the love of your life?

Clearly not.

This is why one approaches wedding loans to fund the preparations on time. Moreover, it allows one to arrange the best, skipping nothing for a memorable wedding.

How do wedding loans operate?

Wedding loans are financial equipment that direct lenders provide to individuals to finance marriage arrangements. These loans can be secured or unsecured.  A secured wedding loan is the best if you need more money to finance the wedding.

One can use the wedding loan to finance arrangements like- catering, decoration, wedding costumes, wedding cakes, venue booking, booking accommodation for guests, etc. Precisely, one can use it for any expense related to the wedding.

It requires a stable credit history and finances to qualify for the loan. Lenders conduct both initial and detailed credit checks as it is a long-term loan. Thus, with wedding loans with no credit check facility, one can know whether he shares the possibility to qualify or not. If not, the lender does not conduct the detailed check. With no credit check facility, the credit score remains the same.

 Whatever your loan type, you must pay the dues within the timeframe. A wedding loan may be more affordable than your credit card. However, it hosts additional costs like loan origination, closure, or prepayment fees.

Counter every cost against the amount you need and decide accordingly.  It would help you choose a suitable repayment term and pay the loan timely. You just need to understand your financials better to clear the dues hassle-free.

How to clear wedding loan debt without exceeding the budget?

As these loans are long-term loan arrangements, one struggles to pay repayments timely. Indeed, financials do not stay the same every time.

However, analyse and pay the wedding loan dues in a timely. Paying the loan by the deadline eliminates extra costs and stress that follow. Read ahead to know the best way to manage loan repayments without troubling your budget timeline:

1)     Analyse your repayments and monthly expenses

To begin repayments, analyse money you can save by the month’s end. You can do so by analysing the most crucial expenses, including rent, utility bills, student loans (if you have one), groceries, etc.

It would help you analyse the money that goes towards these liabilities. Subtract this value from the income. You will get the round-off figure.

Check whether you could save some out of this. If yes, dedicate the money you left with by subtracting savings. One must save at least 20% of savings out of the income. The remaining money, you can save only for repayments.

2)     Consolidate some debts

You may not know, but most of your income goes towards clearing pending debts and credit dues. It could be unpaid credit card bills or other short-term loan that fills up your credit report. More credits in your credit report impact your credit history and make it nearly impossible to qualify for affordable loans or credit cards. Moreover, it impacts the overall budget. 

Debt consolidation is one of the best solutions to pay the high-interest costly debts at once. Yes, you can do so by consolidating the loans. You can choose the costliest debts first to consolidate. Eventually, you can free up some debts and money from the account. It also improves your credit score.

You can use the money you just got to pay towards essential debts.

3)     Practising cost-cutting

It is also one way to clear the debts faster. Analyse the additional expenses you incur often unmindfully. Yes, around 8 out of 10 individuals spend money unnecessarily and never know about it. The below signs say that you spend more:

• Applying for more credit cards when you have pending credit debt
• Opting to dine out twice a week or more
• Spending money on attire or things that you don’t need
• Buying things you do not need in weeks just because of discounts
• Too many OTT subscriptions that you visit once a month
• Not shifting to an affordable energy supplier (electricity and water)

And more…

Do you relate to any of these?

Yes, we all do to some extent.

Curtailing or re-analysing your spending habits can help you save a huge lump sum. You may use that to pay the loan repayments. If not always, practice disciplined spending to clear debts faster. It protects you from unnecessary penalties, interest costs and default (in the worst cases). Moreover, wedding loans with fixed interest rates help you budget for repayments easily. When you know the exact money to pay every month. You can practice cost-cutting to avoid missing any.

4)     Prepay the loan

It is one of the best ways to pay the debt faster. If you have the financial capability, prepayment may help. Moreover, it is the best thing if you explore and apply for loans with bad credit scores for your wedding. It helps save money on interest costs, improves your credit score and helps you get debt-free early. Eventually, you can hit your next big life goals without worrying about pending debts.

However, not every lender provides the flexibility to pay the loan early. Wedding loans last for about 7 years(maximum). Yes, you can choose up to that if you want to pay in small instalments.

If your lender allows you to clear dues with no prepayment charges 2 months before the deadline, do it. However, avoid doing so just for the sake of saving interest costs. If it troubles your budget backup, avoid it.

Bottom line

Thus, wedding loans help you finance related expenses without depending on savings. Moreover, it grants the flexibility to pay the loan in easy and fixed instalments up to the agreeable loan term. Repayments get easy when you know the right way to manage debt. Hopefully, these tips will help you re-organise finances and pay the loan hassle-free.