One of the significant challenges intending couples face is how to source funds to finance their wedding. Although some individuals are financially stable to fund their weddings without external assistance, others might not be able to do so.
If you are considering getting married and you are looking for ways on how to fund your wedding, then look no further. In this article, you will learn about wedding loans and how to finance a wedding in Singapore.
What Are Wedding Loans?
Wedding loans refer to personal loans that are intended to cover wedding-related expenses. The expenses to be covered may include decoration, venue cost, clothing, feeding, sound, and other costs depending on your wedding plans.
This type of loan is often unsecured. Also, its interest rate, repayment plan, and other terms depend on the amount you are borrowing and vary from one lender to the other.
Pros of Wedding Loans
- Low-interest rate compared to credit cards
- Fast disbursement
- Long term repayment period
- It offers couples flexibility in spending the loan.
Cons of Wedding Loans
- It can put couples in long term debt depending on their repayment plan
- Couples may get high-interest rate if they don’t get a lender at a favorable rate when they need the money
- There may be additional fees and hidden charges.
How To Finance A Wedding in Singapore
If you are in Singapore and thinking of getting married but don’t have enough money to fund it, you don’t need to worry. We have provided you with a guide on how to finance your wedding.
- Wedding Loan
Without a doubt, a wedding loan is one of the most common and reliable ways of financing your wedding. There has been an increase in the number of lenders, making it easy to access a wedding loan in Singapore.
It is worth mentioning that the interest rate, repayment plans, loan requirements, and other charges may differ from one lender to the other.
The truth is it is always exciting to want to get married as soon as possible. However, having to take an additional debt can also burden you when starting your marriage.
That said, you can avoid this by considering rescheduling your wedding for a specific period so you can save up before your special day. Savings will help you conveniently afford some non-negotiable expenses like venue, decoration, or even honeymoon location.
- Credit Cards
This is yet another way to finance your wedding. Although credit cards have higher interest rates compared to wedding loans, there are a few exceptions.
Some cards like APR credit cards offer loans with more user-friendly conditions. However, you will need to make the required payment at the introductory period to keep your card in good standing.
- Home Equity Line of Credit or Home Equity Loan
This type of loan is suitable for those who own a house. If you own a house, you can opt for a home equity line of credit or a home equity loan. This type of loan allows you to access an amount against your home’s equity.
The downside, however, is that if you default in repaying your loan or bridge your contract, you could attract extra charges or, in extreme cases, risk losing your house.
- Reduces your Expenses
This option comes in handy if you are considering getting married and don’t have time to save. It would help if you considered cutting down certain costs on your wedding list to reduce the overall cost of the wedding to what your resources can cover. You could achieve this by reducing the number of guests or even changing your wedding date.