Wedding Cost Financing Optionsby Kenneth Koch of Your Wedding Place.com
So the romantic wedding engagement is complete and you are ready to start planning your wedding ceremony and reception. The question is: How are you going to pay for it all?
Traditionally, the brides parents parents would foot the bill and pay for the wedding costs. However, in the 21st century, more of the burden of paying for the wedding has been shifted to the bride and groom.
Not to worry, there are several wedding financing options available to you. You can ease the burden and defer the wedding costs to the future, where you most likely will be better able to afford it.
Home Equity Loan or Home Equity Line Of Credit
If you are already a homeowner, a home equity loan can be the lowest interest cost way to borrow for your wedding expenses. Assuming the home value is greater than the current home mortgage, you will be able to tap into that equity to cover wedding costs.
Interest rates are generally lower on a home equity line of credit than on other unsecured borrowings. Banks offer a wide range of home equity loan borrowing options and products which provides a great deal of flexibility. Many lenders now have online home equity line of credit applications to reduce the amount of paperwork and application approval time.
Credit Card Borrowing
The most convenient way to borrow for your wedding is through the use of credit cards. Most wedding couples already have Visa, Master Card or American Express credit cards, so there won't be the application process involved as in the home equity loan financing option. However, interest rates are usually the highest on credit card debt.
Zero percent 0% APR introductory interest rate credit cards are another option, assuming you do not have bad credit problems.
If you do decide to use credit cards to make wedding related purchases, try to find one which offers some type of rewards. Many credit card companies offer hotel points or airline miles, which can be applied toward the wedding honeymoon costs. Other credit cards offer cash back rewards or discounts on purchases from certain vendors.
Bank Personal Loan
Interest rates on unsecured personal bank loans are dependant upon the term of the loan, amount of the loan and your credit history status. The rates generally should fall between the home equity loan (lowest interest rate) and credit card financing (highest interest rate). The bank wedding loan will have a fixed payment amount over a fixed term, so budgeting that expense will be easy as you move into married life.
There will be paperwork involved and an approval period, so it is less convenient than using a credit card. Again, online applications ease the process.
Wedding Financing Summary
In all likelihood you will use a combination of personal savings, help from parents and other relatives and some form of financing to pay for the big day. If you think you are more likely to pay off the debt in the short term, convenient credit card financing may be the way to go. For longer term payment options, home equity or personal loans may be the least expensive form of borrowing.
Your wedding is a one time event which will rank as one of the best days of your life. Careful planning and a little financing can insure you have the best wedding possible.
Wedding loans and financing options. Using lowest rate, cash back credit cards and online unsecured personal loans to finance wedding related purchases.
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