Post # 46
It sounds like you have heaps on. Is there a huge rush to have a big wedding celebration right now? If it’s the marriage you are passionate about than why not have the marriage ceremony and save for the wedding party down the track? Or plan a much smaller wedding celebration you can afford? I wouldn’t go into debt for a party. You think you could pay off the loan within 6 to 12 months but unless you have a crystal ball you can’t actually know for certain that nothing is going to come up to prevent that, be it health issues, a change in employment, something to do with your child. Debt is a huge risk so I guess only you can know whether it’s a risk you’re willing to take on in order to throw a party.
Post # 47
The point many people are making is that if you have the money around to make payments on a loan, then why not take that money and put it away during your engagement and then pay for the wedding in cash? If you have the money to make payments, you have the money to save. Additionally, many lending institutions wouldn’t dream of making a loan to someone for what is essentially a party. There is no collateral if your financial situation changes, and no way for them to get their money back. Which leaves credit cards, which virtually always have a higher interest rate than loans.
Regarding college tuition, at the state school I attended, current costs for everything are running over $25K a year (tuition, room and board, books, fees), or over $100K if a student graduates in 4 years. This is for a state school, for the 2015-2016 school year, with in-state tuition; it goes without saying that private schools or out-of-state schools cost more, and that costs will be considerably higher 17 years from now. That means saving at least $6K a year, every year, to send one child to college. I am glad that your prospects for your future include high enough earnings that saving that much (or much more, since you don’t think your son is nearly the age where you would have to start saving and since costs will be higher 17 years from now) will be easy for you.
Post # 48
I just don’t understand why you would spend 2-3 years saving that kind of money on a WEDDING. Do you plan to own a home first? $10-15k is no small amount; unless you plan on investing in a home for you and your family, I would put the whole idea of a luxurious wedding behind me.
Also, just for the record, I have a baby due in August so my husband and I have already begun talking about how we’re going to set up a savings account for our son’s future. It’s literally never too early to start saving for your child’s education or prospective needs.
Post # 49
NO LOAN!!! Waste of money. You said that you have a lot of expense coming up. Seriously, you could get married at a court house or at a church. Some churches allow you to use their reception area for event like this. We used my grandmas church for her 90th birthday and for food after a funeral for a cousin. It was no cost, except the food of course. Or, use a park, a friends house and have a BBQ.. You can make the day special and do it cheap. Spend the money on your child and housing, not a wedding. It’ll all work out! You can celebrate with a big party for you anniversary if you have the money saved.
Post # 50
OP there was no point in making this post if you’re not taking advice. Just go ahead and take the loan.
Post # 51
The thing I don’t understand about posts like this is this: “I’d love to take out a loan for half or a little of half the wedding we know we can pay back within 6 months to a year”
Uh…if you could pay the loan back in 6 months to a year, why not just wait another 6 months longer rather than taking out a loan? So if you think you can save up half the money in a year and then take out a loan and get married, then pay off the loan in 6 months…wait 18 months to get married so you have all the money up front? Right? I mean is that not way more logical??
And 9 months is too early to start saving for your son’s education? What?! Every baby shower I’ve been to we give cash toward an education fund (per request).
Post # 52
Exactly. Open a CD or some type of short term, liquid savings (not the most financial vocab savvy lol). In 6 months with even a low interest rate she would be way ahead than taking out the loan. A 2500 cash loan would have really high interest rate, wouldn’t it? They don’t really like to give out those, and unless she has a 720+ credit score it’ll be a pain in the butt!
Post # 53
Not that this will likely happen to you, but my Fiance and his ex-wife took out a loan to pay for their wedding. Turns out she’d been cheating on him and ran off with the other guy shortly after the wedding, so he was stuck paying that loan off. It took him five years since he didn’t have the dual income he planned on. You can’t expect the unexpected, and any number of things could come up after you take out that loan (death in the family leading to funeral expenses, major medical emergency, etc.) that would prevent your paying it off. Save, save, save! If you estimate you could pay that loan off in six months, then hunker down and save for an extra six months and have your wedding once you’ve got the money in your bank account.
Post # 54
Terrible idea to take out a loan for a wedding. Plan the wedding that you can afford.
Post # 55
And yeah exactly.. if you can afford to pay back a loan, you can afford to save!! Just put those ”loan payments” into a savings account for the next few months/years until you can afford a wedding.
Post # 56
Sorry, but this has “bad idea” written all over it. I took a small loan once, when I was younger and felt I needed money for a class right then. The loan was for $2,000. I had great credit, but, given my age, a very short credit history, and ended up paying almost $3,000 back to the company! Now, I work full time and make, in one pay period, almost exactly the difference between those two amounts. There’s no way in hell I’d work for two whole weeks to pay INTEREST on a class again, let alone a PARTY. No one is saying you don’t deserve what you want, just that you need to take the time and work for it rather than have instant gratification.