(Closed) Loan for the wedding?

posted 10 years ago in Money
Post # 17
Member
2186 posts
Buzzing bee
  • Wedding: September 2010

i wouldnt do it because in this economy, you really CANT expect that much from people, unless they are loaded, and even then those folks are tightening the purse strings too. Honestly do what you can pay for now, for instance, FH myself and my parents are doing a “pay as you go” kinda thing where we pay the bills as we come – not really saving but not going into debt either.

you dont want to have the first thing you have to deal with as a married couple is pay off your wedding debt.

Post # 18
Member
454 posts
Helper bee
  • Wedding: May 2011

So in the best worlds, every couple or guest gives you $120.  If you take out a loan you throw an amazing party but lets say half of all your gifts go towards paying off the wedding.  If you don’t take out a loan, you throw a smaller, still amazing party, but you take home all the money to spend on you and your spouse.

Someone once told me, if you can save even $400 dollars on your wedding – think what you and your husband could do with that money: camping equipment, furniture, awesome dinners out.

I think don’t take the loan, simply because money can really be put to better places than a wedding.

Post # 19
Member
546 posts
Busy bee
  • Wedding: June 2010

I would not take out a loan for a wedding and I certainly wouldn’t count on monetary gifts to pay if off afterwards.  That is a terrible idea.  I am not sure where you are from, but I am not having a wedding to get gifts or money from my guests.  And if they couldn’t afford a gift at all I wouldn’t care.

Post # 20
Member
248 posts
Helper bee
  • Wedding: July 2010

I’m going to differ a little from most of the PPs and say that it depends on the loan in comparison to the rest of your financial picture.  Putting a thousand or so on a credit card to be paid off in the next six months either by wedding gifts or by skipping dinners out is not that big a deal if you have good jobs, and might be better than draining your savings entirely.  And don’t forget the importance of establishing a credit history.  But I don’t think you should throw a party you really can’t afford and depend on gifts to keep you afloat.  If you’re looking at a major $10K+ loan I wouldn’t do it.  Those are for car and house and school IMO. 

Post # 21
Member
39 posts
Newbee
  • Wedding: September 2010

My opninion runs with the majority of people here.  No, don’t do it.  You don’t know what people are facing financially right now so you can’t readily count on the fact that the loan can be paid off from gifts.  Also, don’t start your life together in debt. 

Post # 22
Member
181 posts
Blushing bee
  • Wedding: October 2010

i agree with hopewell, depending on a couple’s financial status, income, job security etc, putting some things on credit rather than spending savings can certaintly work out.  it sounds however that op is banking on the guests cash gifts to help make the payments. i would never imagine getting such generous gifts from my family and friends.

the tricky thing about credit is if you have it, you spend it, and it makes it easier to spend more than you need to or you would otherwise.

if you have for example $2000 in the bank and you get a $2000 credit card with 0%apr for like a year, then yes, spend the credit card instead of the savings. but not both. then you can divide the $2000 savings into 12 payments over the year. this will build credit, give a little breathing room for heaven forbid, emergencies etc but you really arent spending money you dont have. then if you get cash gifts, you can decide to use them to pay off debt sooner than originally planned.

pp made a great point though, to have a $5000 wedding “paid for by cash gifts”, you would have to have about 500 guests. and it is extremely rare for weddings to be less than 5k with very small guest lists. just not practical.

i personally am using a combination of mostly cash and some credit for our wedding. we are chosing to have our wedding right after our home renovations will be finished. when they are done though, we will be living rent free and the ONLY bills we will have are food/personal items and debt. (no electric, cable, water, laundry, etc). it is our priority to wed this year and spend next year paying off all of our debt rather than wait a year.

if we had rent and utilities to pay (or if we wanted to buy a house) etc, we would have to wait, or have a much smaller affordable wedding. our income will allow us to pay off most of our overall debt our first year married.

if you decide that your regular life budget can comfertably afford a loan payment, (regardless of gifts) and its more important to you and ur fi to wed this year, then go for it. people make that choice all the time when they spend credit cards for things they could wait for.

sorry this is long, but one last note, however negative. how terrible would it be if you went into debt to afford this day and after much of that money is spent, the engagement is called off or something crazy happens that prevents the wedding this year?

Post # 23
Member
4485 posts
Honey bee

Do not rely on monetary gifts at all. While some people will give cash gifts, many will not so don’t assume they will. It is ok to break the tradition of what is common in your area if it does not fit your means. Don’t go into debt for one day. If you can’t afford to pay for the wedding yourselves without a loan, scale back to what you can pay for yourselves. If you get a loan, you will be paying it off years after the wedding is over.

Post # 24
Member
24 posts
Newbee
  • Wedding: August 2012

I’m not totally against the idea of taking out a loan to pay for the wedding but agree with others that it depends on your financial/personal situation and how much of the cost of the wedding are you considering in getting.

I too have an expectation of a minimum of $100 per person for guests but consider whatever I get more like bonus money.  Although I know this is the norm for weddings in my culture/family I am also aware of the economic situation and cannot depend/count on it.

I do believe that there are ways to save money or to borrow well.  My fiance and I have made great sacrifices in the past two years to save up for a down payment for a home.  Now that we are engaged and want to get married soon our goals have shifted slightly.  Of course we don’t want to touch our down payment and so we will continue our budgeting and saving but this time for the wedding.  We are also taking a credit card balance transfer for 0% for 15 months to use and then pay it in full with our savings when the 15 months is up.  I’d rather keep my savings earning interest in the bank then have to spend it now!

My advice is to review your financial situation, review your short-term and long-term goals and then look at what your options are to achieve those goals.  Whatever you decide, I hope it works out!

Post # 25
Member
181 posts
Blushing bee
  • Wedding: October 2010

kit, sounds like a great idea, just make sure that there isnt a balance transfer fee!

Post # 26
Member
284 posts
Helper bee
  • Wedding: April 2012

$5000/500 = $10

 

Just sayin’.

Post # 27
Member
14 posts
Newbee
  • Wedding: February 2012

I think taking out a loan for anything that depreciates in value (which is basically everything but education and a house) is a really bad idea.  It essentially means you can’t afford your lifestyle, to be blunt.  And at the end of the day you’ll be married, have pretty pictures, and maybe some cake.  That’s it.  Are you willing to pay for the next five or ten years for that?

Post # 28
Member
1114 posts
Bumble bee
  • Wedding: July 2013

I think it’s crazy to take out a loan for a wedding.  If you can’t afford it, either have a smaller wedding or wait a bit longer and save up.  You can’t rely on your gifts for paying back the loan as you don’t know whether you’ll get any gifts, let alone how much they’ll be.  It may be good etiquette to bring a gift to a wedding but that doesn’t mean it’s obligatory!  Seriously, what’s the point in starting your life together in debt?

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