Wedding loans

What is a wedding loan?

A wedding loan is fairly self-explanatory. It is an amount borrowed to help you, or your loved one, factor in those extra expenses towards the big day.

How does this work?

A wedding loan is generally a ‘personal loan’. There isn’t specifically such a thing as a ‘wedding loan’. Using a personal loan allows you to borrow a set amount over a set amount of time. If you have already been saving for your wedding it may help you to top up any shortfall.

Benefits

  • Borrow from $100 to $5000 which can be payable within 24 hours.
  • Can be cheaper than using a credit card to pay for the celebrations.
  • It is a viable option only if you can comfortably repay it.
  • With fixed monthly repayments, it allows you to budget accordingly.
  • Although you may be penalised for small or very large amounts of borrowing, the longer the length of time it is borrowed over may help reduce interest.

To be considered (negative points/ risks)

  • Depending on the amount you borrow and how long for, a credit card may be more viable.
  • Be aware of crippling high-interest rates, shop around and compare before applying with any lenders.
  • Borrowing large amounts or quite small amounts may result in higher interest rates.
  • Try not to begin a marriage with a crippling debt- be upfront with your partner and make it a joint decision whereby you are both happy with repayments.