Could a Personal Loan Give You Your Dream Wedding?
Planning a dream wedding is a time of happiness for young couples. The problem that many face is finding a financing solution that will make it possible to enjoy the biggest day of their lives. Although many options are available, such as getting help from parents or using credit cards, a wedding loan from Clydesdale Bank is a solution.
Benefits of the Loan
Although a personal loan is not the first financing choice a couple should use, it is much better than using a revolving account or asking friends to chip in. The benefits of a personal loan can make it easier to determine that it is an appropriate solution.
According to Rebuild.org, taking out a personal loan to pay for wedding costs can help a couple stay within a set budget and allow them to make purchases that will improve the wedding. Sticking to a budget is a great way to prevent money problems after the wedding and will allow a new couple to learn about the spending habits of the other individual.
The loan not only provides a budget that a couple can work around and avoid taking out too much debt to handle, it also prevents the need to use collateral for the event. Putting up priceless family heirlooms or a vehicle to pay for the wedding can result in problems down the road. A personal loan is unsecured, which allows a couple to take out the funds without worrying about the loss of personal assets.
Downsides of the Loan
Although a personal loan can help provide the funds for a dream wedding, couples need to determine if it is appropriate based on individual finances and the situation going into the marriage. Taking out a loan is not always the best course of action when a couple has other financial responsibilities, such as student loans or a mortgage payment.
The downsides are not limited to the possibility of taking on too much debt. According to CreditKarma.com, it can also cause problems when credit scores are low. A low credit rating will result in a high interest rate, which can make the debt payments higher than expected.
A personal loan can help fund a dream wedding, but it should not be the first solution. By leaving the loan as an option to consider before using credit cards, it is possible to limit the amount of money needed for the final touches of the wedding and keep the debt to a reasonable amount.
James Wilson is a keen blogger who writes on a number of topics. James is most at home writing about finance and green energy, you can find more of his work at The Financial Newsgroup.