Anyone who's ever planned a wedding will tell you that it was the best day of their lives... and the most expensive! It's easy to see why - if you can't have fireworks, an open bar, multiple outfit changes, etc. on your wedding day, when can you!? In our quest to take some of the mystery out of weddings and finance, we've already discussed how much a wedding costs and why weddings are so expensive, and today, we're guiding you through the potentially uncharted territory of wedding loans.
What is a Wedding Loan?
Let's start with the basics - a wedding loan is a loan that you take out specifically to pay for your wedding. Some financial institutions offer wedding loans with specific terms and conditions, but, more often than not, a wedding loan is just a personal loan, the same type of loan you might take out to fund a new car or a holiday.
Should I Take Out a Wedding Loan?
Of course, we can't actually answer this question for you - it depends on your financial situation, the kind of wedding you want to have, etc. - but we do have some tips on the topic of financing your wedding. The first thing to do is familiarise yourself with how much weddings cost (we've got a handy feature on that here), so you'll have a ballpark figure to work towards. Then, you can start to look at your finance options, which might include savings, gifts from parents and wedding loans. It help to make a pros and cons list for each option that's available to you. For wedding loans, this list comes together easily enough - loans can relieve a lot of stress around wedding planning, and help you have the kind of wedding that might otherwise not be possible. Of course, you've got to factor in the repayments, too.
What Should I Look For Choosing A Wedding Loan?
When it comes to nearly every aspect of wedding planning, our advice is to shop around. In this case, you’re looking for a loan with a low interest rate, and flexible repayment terms.
How Do I Apply For A Wedding Loan?
You'll be glad to hear that the process of applying for a wedding loan isn't overly complicated. Each financial institution will have its own application process, but, in general, you can apply either with your partner, or on your own, and there are a few ways to do it; in person, over the phone, or online. You'll typically need proof of ID, proof of PPS, proof of address, payslips and recent bank statements.
Is There Anything I Should Avoid When Choosing a Wedding Loan?
When it comes to wedding loans, there are two really important things to look out for. 1) Choose a reputable lender that's regulated by the Central Bank of Ireland and 2) make sure you've got a thorough understanding of the terms and conditions of your loan. These may include (but are not limited to!) how much you're borrowing, how much you'll be paying back in total and what your monthly repayments are going to be.
How Long Does It Take To Pay Back A Wedding Loan?
This totally depends on the specific loan you're looking at. Some financial institutions offer flexible repayment terms of between one and seven years on wedding loans, so you can plan around other important milestones like buying a house or starting a family!
Listen to our dedicated One Fab Day podcast episode on Top Tips for Mastering your Wedding Budget
