Wedding Loans: How to Finance Your Wedding in the U.S.
There are only a few events in life that matter more than one’s own wedding ceremony. With the memories of a lifetime at stake, we often plan to celebrate the occasion with lots of grandeur.
Obviously, the stress to make sure everything goes according to the plan increases as the big approaches. However, every piece may not fall into place as planned. There may be occasional hiccups that need to be dealt with.
Wedding-related finances can be one of those. It is unfortunate, but it is true that getting married can be expensive. Yes, you may have a well-planned budget, but with an event as big as a wedding, not everything will go as planned.
With all of this in mind, it should come as no surprise that couples to bank loans and credit cards to help finance their wedding.
How Much Does a Wedding Cost?
According to The Knot’s 2017 Real Weddings Survey, the average cost of a wedding in the United States is a whopping $33,000. And that excludes the cost of the honeymoon!
While the figure may seem pretty steep, one should treat that as a benchmark. There are ways to cut expenses on various fronts (discussed below!) to keep the expenditure from mounting unreasonably.
But still, at the very least, you will need to book a venue for the wedding, buy clothes and jewelry, pay for legal marriage registration and arrange a decent get-together with your near and dear ones. Even if we exclude all the unnecessary bells and whistles, you will still need to arrange $10,000 – $15,000 to fund a low-profile marriage.
Why You Probably Don’t Want to Pay with a Credit Card?
Not everyone has the foresight to cover wedding expenses through savings. If this sounds like you,, then the critical question is: how do you plan to fund your wedding?
The most convenient answer from today’s youth lies in credit cards. But don’t forget, irresponsible use of credit card can lead to debt traps. High interest rate with the potential to overspend can be a perfect recipe for disaster.
If you must get into a debt to finance your nuptials, then a much safer and affordable alternative is to go for a wedding loan. With lower interest rates and fixed monthly repayment schedule, your post-marriage budgeting becomes a lot easier.
What is a Wedding Loan?
A wedding loan, also known as marriage advance, is an unsecured personal loan that is designed specifically for covering expenses incurred in a marriage ceremony or reception.
There are several financial organizations that offer wedding loans at competitive interest rates. If you have a good credit history alongside a decent income stream, then it’s not at all difficult to secure a wedding loan.
The best rates are usually reserved for borrowers with excellent credit score. But even if you don’t qualify for the best rates, it would be a lot better than the interest which credit cards attract. Adding a co-signer, such as your parents, can also increase your chance to qualify for better deals.
You should ideally evaluate the offers from multiple lenders and opt for the one that provides you the best deal in terms of interest rates as well as flexible repayment schedule.
How to Get a Wedding Loan with Stilt?
Stilt offers an online application process so that there’s no time wasted visiting branch offices repeatedly.
Typically, you need to fill out an online application form with your personal as well as financial details. The team then evaluates your application and verifies your financial well-being from various sources. In case additional information is required, a quick call is arranged to gather the required details.
Once all of your information is submitted, Stilt sends out a decision within 24 hours.
If your application gets approved, you will automatically be notified via email and mobile messaging. It usually takes 2-3 days for the approval process and another couple of days for the disbursal of funds.
5 Tips to Save Money on Your Wedding
1. Make a Budget (and Stick to it!):
It’s good to have a reasonable budget in mind from the very beginning. Your expenses do not end with the ceremony, but you are actually stepping into a far greater financial responsibility after tying the knot. So setting a fixed budget is important, but it is far more crucial to actually stick to it and not overspend at the heat of the moment.
2. Consider a Cheaper Venue:
The charges for booking the wedding venue constitute a sizable percentage of the overall wedding cost. While everyone wants to welcome the guests to a rousing reception, it’s wise to keep a closer watch on your wallet. If it is not fitting within your set budget, consider a cheaper alternative. You can always spend the savings to fund your honeymoon.
3. Buy Your Own Alcohol:
If you plan to have a bar on your reception, then it’s better not to rely on third-party bartending service. You can always buy alcohol on your own and convince your friends or cousins to serve the drink responsibly. It not only offers you a great saving on the final catering bill, but rest assured, all involved parties would have lots of fun at the same time.
4. Skip the Band (and Maybe Even the DJ):
Focus more on the aspects that are integral to the marriage ceremony. While bands and DJ performances can add a bit of glamour, it can also drain your wallet at a rapid rate. You can always rent out quality stereo systems and plug-in your smartphone to play the music of your choice.
5. Keep Decor Simple:
Venue decoration is yet another major source of expenditure. You can always borrow potted plants from friends and neighbors instead of paying for expensive floral decoration. Lighting setups can also be taken care of within the internal family circle. All in all, you can make a decent saving by keeping the decor as simple as possible.
If you are concerned that your wedding expenses will exceed your budget, you can always count on affordable wedding loans to meet your immediate financial requirements. With lower interest rates and flexible monthly payments, a wedding loan can offer you the much-needed respite from mounting credit card bills. At the same time, you can also try to reign in the wedding cost by employing various cost-cutting measures. In a nutshell, it’s important to set a reasonable budget and make every possible attempt to stick to it.