Wedding loan: understand when it’s worth it and how to do it
Having an unforgettable wedding party is the dream of most couples. In addition to symbolizing the union of the bride and groom, it forever marks friends and family. However, these celebrations are expensive and it is not always possible to count on all the money at the desired time.
At such times, many couples use a wedding loan. But is this a good option? To clarify this and other points, we have written this text with information on this issue. Follow!
When is a Wedding Loan Worth Taking Out?
The list of items for a wedding is very long. And some are indispensable, such as renting space for the event, food services, costumes, among others. In this way, a loan becomes advantageous when the couple does not have all the money available while organizing the party.
A loan also facilitates the financial planning of the event. With the total amount in hand to cover all expenses, there is no risk that payments will be dispersed among different sources, such as credit cards and checks.
In addition, when paying in cash, it is possible to obtain discounts from suppliers and service providers, which helps to make the event cheaper. Finally, it is not necessary to wait years to accumulate the necessary amount, anticipating the dream of the party.
What is the best wedding loan option?
There are still no specific lines of credit to finance weddings, so interested parties have to resort to free loan modalities, the most common being personal credit and payroll loans.
Personal credit is generally simpler, but tends to have shorter payment terms.
Payroll loans, in turn, are an interesting alternative for civil servants and retirees. Despite this, private sector employees are also able to access this type of loan with certain conditions (such as an agreement between a company and a financial institution).
In the payroll loan, the payment of the installments is made through the direct discount on the salary. With this guarantee, it is possible to obtain lower interest rates and longer installment terms.
How to make?
To take out a wedding loan you need to follow a few steps. The first is to estimate what the total cost of the party will be. As unforeseen events are common, the ideal is to imagine a slightly higher value than originally stipulated. However, the amount should not exceed the couple’s ability to pay.
Then, the path goes through consulting banks and financial institutions to compare interest rates and payment terms, in search of the most advantageous option.
Assessing the so-called Total Effective Cost (CET) is essential, since this number represents all costs that will affect the operation. In addition, some requirements must be met, such as having a clean name in credit protection services, stable employment and no outstanding debt.
It must not be forgotten that a good financial organization is indispensable. The value of the parcel cannot compromise a large part of the couple’s budget, so that it does not influence the quality of life of the newlyweds.
With these tips, a wedding loan can prove to be an excellent alternative to pay for the expenses that the ceremony demands more smoothly.