One of the most memorable occasions in anyone’s life is a wedding. However, planning a marriage can become a costly affair. A 2018 Bridebook website survey stated that a wedding could cost up to £30,355.
Moreover, it also suggested that sixty-five per cent of people could exceed the highest amount. Therefore, people in the UK often opt for wedding loans. It is one of the most prominent kinds of unsecured personal loans.
Unsecured loans for weddings or any other occasion come with a large number of benefits. Some of them include immediate financing, fulfils small amount requirements, easy repayment solutions, etc.
4 Major Benefits of a Wedding Loan
● Immediate Financing
Keeping up the stock, last-minute changes, and other requirements while managing personal details can become challenging during a wedding. At some point, the bank account might not have an adequate amount to provide a surprise gift, offering, or anything else.
Therefore, an unsecured wedding loan that comes with no guarantor requirement can prove very useful. It can provide immediate funding to the borrower, i.e., the groom or the bride, or anyone else that is managing the wedding finance.
The easiest method to avail a wedding loan would include searching through the best online lenders, financial institution, or bank. Filling the loan application could take a few minutes. However, the lender response is relatively quick. Therefore, the loan borrower wouldn’t get queued for months.
● Fulfils Small Denomination Requirements
Acquiring a wedding loan to cover up all the expenses of the occasion could become problematic as it might require time for approval. On the other hand, availing small denominations to cover up minute expenses becomes a manageable process.
Therefore, a wedding loan can provide an immediate response to a few thousand pounds. Moreover, the interest rates can also ease the burden of repayment for the borrower. So, a wedding loan can provide immediate relief for small denomination requirements that can help to run the event smoothly.
● Easy Repayment Solutions
Loans for weddings come with easy repayment solutions. It means a borrower can avail repayments for long durations. Therefore, the pressure of covering up expenses immediately after the honeymoon or the upcoming month diminishes.
Unfortunately, long-duration loans for weddings come with a significant drawback. The borrower would need to pay higher interest rates, and the overall sum would become more than the borrowed sum.
But, many lenders provide the option of pausing the loan repayments for a period of two or three months. Therefore, the borrower gets sufficient time to make arrangements for the amount and start making repayments. As a result, the borrower wouldn’t get stressed out due to financial pressure.
● Manageable Interest Rates
Unless the borrower has a bad credit rating, the interest rate of loans for weddings isn’t relatively high. It is quite manageable by the borrower. Some lenders may even provide affordable loan options to borrowers with an excellent credit rating, or no prior defaults.
However, the affordable interest rates come with a short duration. As mentioned earlier, the longer the loan repayment period, the more is the interest rate. Fortunately, opting for an unsecured loan over a secured personal loan protects the assets of the borrower even during defaults, or missing repayments.
Furthermore, shortening the repayment period might decrease the interest rates but increase the overall monthly amounts. Therefore, borrowers must take precautions on the borrowing amount, interest rates, and repayment duration.
Alternatives to Wedding Loans
The lending market has enormous alternatives to loans for weddings. However, each of these financing options comes with pros and cons. Choosing a zero interest rate credit card can prove useful.
However, before taking amounts from such cards, the borrowers must make sure of the zero interest rate periods. Most credit cards provide a zero per cent interest rate for a limited duration and charge tremendous interest rate after the duration elapses.
However, the wedding financier can manage repayments during the same period; then it is an optimum solution. Other borrowing options could include peer-to-peer lending and bank overdraft.
Borrowers can avail competitive interest rates from a peer-to-peer lender as it involves direct communication, and removes the negotiator or middleman. Furthermore, loans for weddings aren’t a suitable option for all borrowers.
A person already in financial debt should avoid taking loans for weddings. Instead, the borrower must curb down existing expenses to save money for existing debts. A lot of methods can help to deal with monetary problems before the wedding starts.
A few debt management solutions include starting a new source of income and reducing household expenses by switching service providers and supermarts. Besides this, renting, or selling space or unused products can generate income.
Along with these solutions, the borrower can go for debt consolidation. It can help to make a single monthly repayment spread over a long duration. Therefore, the burden of managing existing borrowers would become redundant, and ultimately make the borrower debt-free.
Conclusion
Making such changes would improve the credit rating, and chances of availing quick loans in the UK for the wedding, if the requirement arises. Therefore, a wedding loan comes with a varied number of advantages.
However, a borrower must avail the loan only if managing repayment isn’t challenging, and there aren’t any existing debts. Otherwise, clearing existing debts, and making arrangements for saving would prove much more useful.
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