It is possible to organize a wedding on a small or large budget, but it always costs money: space rentals, catering, wedding dresses, hairstyles and make-up, invitations and thank-you cards, a potential performer and a photographer can all add up to a large expense. In addition, the potential honeymoon increases the amount.
However, Finns often want to keep their wedding budget within reasonable limits. However, the price easily accrues several thousand euros to make the day a memorable one.
But not everyone has such large sums of money or relatives cannot provide enough financial support. Wedding loans are one way to finance experiences, but what should you do about them?
Planning and saving are worthwhile
The best financing option for weddings is definitely savings: if there is still time for the party, it is worthwhile for the wedding couple to start saving regularly and plan their budget well in advance. Every month you can save a small amount of money.
For example, if you put $ 200 a month into a savings account for a year, you can save nearly $ 5,000 in just two years! If you save two people, the same amount has already accrued in one year.
You can use our Excel budget, for example, to help you save on wedding planning!
Even a smaller amount can be achieved if, for example, you are able to hold a party at home and invite fewer guests to the party, you can easily save on wedding expenses. Many things you can do yourself or ask your relatives or friends to help with the arrangement. For example, Wedding.co.uk offers good savings tips for organizing weddings on a smaller budget.
Despite the savings, some of the budget can be exhausted, and it is not always possible to set aside money on a regular basis and the entire amount will not accrue quickly enough.
In this case, one option is to partially finance the wedding with loan money. Thinking about using loan money for weddings, but borrowing for weddings is becoming more common.
Is it worthwhile to finance a wedding with consumer credit?
However, the most important thing is to budget the wedding according to your ability to pay. In order to find the right loan, you need to choose the appropriate repayment period and loan type in addition to the loan amount. Banks and financial institutions offer different types of credit for wedding financing.
Applying for a consumer loan often does not require visiting a bank, but you can apply for it directly online.
Flexicurity can also be used to finance weddings when the costs are not completely clear: the credit can be withdrawn whenever necessary within the limits of the credit line, so there is no need to increase the loan amount all at once. More than one lender offers Personal Payday Loans such as Good Finance.
How, then, should a loan be selected? In order to find the most favorable loan, instead of the nominal interest rate, you have to look at the current annual interest rate, which represents the full cost of the loan (handling costs, account management costs and other charges in addition to interest) .
There are large differences in the total cost of loans.
We compared € 10,000 loans over a 24-month loan period. For comparison purposes, information on loans using risk-based pricing is compiled, ie the borrower’s credit rating affects the interest rate of the loan.
The current APR in the table includes all the costs associated with the loan, making it easy to compare the different loans with the APR:
In this case, Norwegian Bank offers the most favorable loan, provided the applicant has a good credit rating. Nordax and Collector, on the other hand, offer cheaper consumer credit to someone with a lower credit rating.
Collector’s Personal Payday Loan is also the only “Personal Payday” loan in the comparison, allowing the applicant to withdraw credit at any time within the credit line.