Is A Wedding Loan A Good Option?

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Is A Wedding Loan A Good Option?
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Almost everyone dreams of having the wedding of a lifetime. Well, this dream can be fulfilled if and only when you have adequate monetary resources.

Not to mention, when it comes to weddings, people start thinking of taking a loan to make their day special and just the way they’ve always wanted it to be!

Wedding loans are commonly referred to as a personal loan, which helps you manage your expenses for the D-Day. It is suggested that a wedding loan is not an ideal option; instead, it is better to save enough money from the start and accordingly plan your wedding.

You can possibly shift your wedding six months later if you are running short of cash, as this way you don’t have to apply for a loan.

But, after considering all the possibilities, if you feel like there is no considerable choice left other than applying for a loan, then here’s what you should be aware about:

What is a wedding loan?

In simple words, wedding loan can be referred as an unsecured personal loan. As a matter of fact, personal loan can be utilised for several reasons and wedding is one of them. The interest rate for such loans depends on the debt-to-income ratio, creditworthiness and many other factors. The loan amount and the duration of its maturity are also two significant factors that you must take into consideration.

How to acquire a wedding loan?

In order to get a wedding loan you need to get in touch with a bank, credit union or a reliable online lender. Some lenders have specific packages for a wedding loan. However, most of them offer this sum in form of personal loan which is comparatively inexpensive.

Financial service providers and lenders may skimp through your financial history or might as well check your credit score.

Apart from this, there are some effective strategies which you can adopt in order to save money for your wedding, which are:

Prepare a budget:

If you are someone who doesn’t keep a track of your expenses, then now is the time to develop this habit. At this moment, you must learn to follow a budget and stick to it. This way, you can save a lot of money and spend less on unnecessary and unwanted desires.

Figure out those expenses which you can easily cut down. For example, you can avoid picking up take away to work instead you can prepare your own meal. If you are well-versed with exercises then avoid taking up that expensive gym membership instead do it on your own at home.

By saving thousand pounds every month you can actually turn your dream wedding into reality.

Automate savings:

If you are someone who cannot save money even after trying hard, then put yourself in an automate savings plan. Open a separate savings account where you can save for your wedding.  There are various savings options, such as weekly, monthly or even quarterly. But, ultimately the choice is yours.

Avoid using your emergency and retirement funds for your wedding expenses. This is the most common mistake that most individuals make and regret it later in life.

Extra Income:

One simple way to save money is by generating an additional income. You can pick up a part-time job or freelance to earn some additional pounds. There are several professions which you can opt, one of which is a freelancer like a graphic designer, dancer, painter, etc.

Nowadays, there are some people who have online portals, such as corporate gifts, photography, etc. You can earn royalty through some of your good artworks and gain some additional income.  If you do not find any of the above professions suitable for you, you can also take up the job of baby-sitting.

Use your credit card:

This is the right time to use your credit card, but it is important to track your usage. This will restrict you from crossing your credit limit. While using your credit card make sure that you are charged only for the amount you have used.

In the past, there have been instances, where people have been charged additional money on mis-sold products like PPI policy. If you see a similar resemblance you can always opt for free PPI check. This helps you to ensure that whether or not you have been mis-sold the policy.

There are some companies in the UK, which guide you in this process so that you obtain the amount that you deserve, which you had unknowingly paid to the service provider.

Besides, it is also important to pay off your credit balances because you can be charged with heavy interest rate on them.

Sell unwanted things:

There are several belongings which you currently do not use and may not use it in future as well. This is the correct time to sell them off and pocket some cash. Skimp through your attic, storage unit and closet, and collect all those belongings which you no longer need.

You can also sell off any additional or unwanted furniture in your home. This cold harsh cash can probably be helpful to you for your wedding. You can search for websites that consist of re-sale furniture, appliance, etc. and post your furniture on it get a better price in return.

In case after taking all these additional measures you still run short of money you can always ask your family and friends to help you out. They will be happy to help you.

To be on the safe side, prepare a loan agreement which states all the clauses and keep a third party in the loop. It is always better to communicate and share your thoughts with your loved ones, as they can suggest solutions you might not have come up with yourself.

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