To most people, a wedding is a lifetime event that they cannot afford to trivialize. But, with average prices going through the roof (£20,000 on an average), the dream wedding may remain a dream for most working class couples.
This begs a pertinent question: Is it right to borrow money for your wedding? As per IVA-Advice.co Research, close to 17 percent of married couples (which is approximately 5 million UK citizens) loaned in a portion of their total marriage expenses.
Older people are likely to find it difficult to get a marriage loan. According to the same research report, only 4 percent of people who are more than 65 years old have borrowed for their wedding, which is meagre compared to 47 percent for married couples in the 25-34-year-old age range.
This is possibly due to the fact that borrowing funds is no more out of the ordinary. Your older family members may have not relied on outsider money for their wedding expenses, but their experience will probably help you get through your ‘big day’ celebrations.
Albeit younger people are likelier to rely on borrowed funds for their big day, they certainly have an edge over the older couples.
The web is awash with wedding sites and blogs that can possibly spoon-feed wedding probable’s on how to get through their wedding day cost-efficiently. In other words, it pays to browse the Internet and other sources for some inspiration and tips before taking the loan route.
Most couples (66 percent) take wedding loans not exceeding £5,000. However, 17 percent took a loan for more than £10,000. Though, taking statistics into consideration isn’t really the way to go about things. If you are not sure about how much to borrow, arrive at a sum that you can realistically return. The following are some tips for matured borrowing:
If you are opting for a loan, calculate the sum you can possibly borrow, how huge your repayments per month would be, and the total interest sum you’ll end up remitting.
Go for low interest rates. Try paying back the loaned amount as quickly as possible – otherwise your interest due will keep escalating.
Take a credit card that levies zero percent interest on expenses for a specific time period. Move or clear out the balance before the due date – or get ready to remit interest on the whole balan
Each month, exceed the minimum repayment sum. If feasible, clear out the whole sum.
Borrowing funds to meet marriage expenses may sound like a wise idea, but there are possibilities of you ending up feeling blue after some time.
Close to 39 percent of married couples who took the loan ultimately regretted their move, to a certain extent. The percent figure comprises couples who realized they could have borrowed a little less (25 percent) and also people (22 percent) who completely regretted their decision to borrow.
There is certainly no doubt that your wedding day is something you remember for a lifetime, but it’s also important you realize that it’s just a beginning to things. You are likely to confront several other big financial commitments post marriage – such as starting a family, buying your own house, etc.
And remember, debt may result in further debt, in certain cases. Even if the borrowed money is well within your repayment capacity, slight or major alterations in fortunes can never be ruled out.
If you have debt issues, regardless of whether it’s to do with your marriage or any other purpose, we at IVA Advice could help you out. Contact us via our web form and an adviser will get in touch with you discussing your options.