Credit Card vs. Loan

Holy shit do not listen to the advice about the 401k lol. That's pretty much the worst advice possible.

Also, please don't borrow against your 401K (as CareBear suggested) until you talk to a tax professional. That can have serious tax implications.

Yeah, I would really advise against this. What's the rush? I understand that it's hard to pay your way through school and save for a wedding at the same time, so why not wait? You said the debt you incur will be paid off quickly. If you anticipate that you will have the money to pay off the loan in the next couple of years, why don't you just wait two years, set that money aside, and then pay for your wedding outright without having to pay interest costs?

I don't know your financial situation but $5,000 seems like it would be easy to save up over the course of a year. Any expenses you can cut back on?

Like Raelyn said, getting a credit card with a 0% interest for 18 months or whatever is a great alternative to taking out a loan, but I would not UNDER ANY CIRCUMSTANCES use this as your sole source of funding. If you need it up front to put down a deposit, and you can save up to pay it off over the next several months, that is a good option. My FH and I did something similar. We racked up almost enough frequent flyer miles to get us to and from our honeymoon and have paid the wedding balance off over the last year. However, unless you have a clear cut plan to quickly pay off the balance, don't go this route.

Okay I don't think you should go into debt, but try maybe a 0 % interest credit card. And when they say it will cost 5500 for the loan, is that what you'll pay in total over the loan, or is that 5500 in interest on top of the 5000 principle.

No, the 5,500 would be the total of the loan. I made sure to read the fine print haha

I don't have an opinion on loans or ccs besides if you really wanna go that route, loans are likely to offer better interest rates.

However, do not ask people to pay for your wedding. Tacky tacky tacky.

PLEASE do not borrow against your 401k

Yeah another vote for not borrowing against your 401k. Bad bad idea.

And I guess I misread your post. But seriously, don't take out a loan. Have the wedding you can afford.

Can i flag the comment that says borrow against your 401k lol?

I agree with other posters. Why not get married now, and then save 5,000 over the next year and have a one year celebration? Let's say you have 1,000 in savings now, that would be about 300 a month. We are giving you this advice for 2 main reasons- we've seen many brides who are in debt for years. If you can't save $200 a month now for your wedding, how do you expect to pay off $200 a month? It turns into a vicious cycle. Your example you'd end up borrowing 5,000 and paying back 5600 with that interest rate, assuming you have no other surprise expenses comes up. Secondly, going into debt is risky. Think if another emergency comes up. A car crash, new washer/drier, a flight for a family member's death. If you don't have an emergency fund set up, and you're already in debt from your wedding, then that's asking for trouble.

As someone with a degree and a career finance, here is my advice:

No no no no no no no no.

This is a terrible idea. You should not be putting anything on a credit card you cannot pay off the next month. You should not be taking out a loan on an unnecessary expense. You should not be having a wedding if you cannot afford one. If your options are a loan or debt or no wedding, go to the courthouse.

AND HOLY CRAP DO NOT EVER BORROW AGAINST YOUR 401K FOR SOMETHING LIKE THIS. If your house falls down or something and you literally have no other options, that is the only time this should EVER be your course of action.

OP - please do not borrow against your 401k. Just horrible advice.

The fact is that you have limited cash flow right now. In your post, there is nothing to indicate that you will be generating additional income within the next two years. You may cite a future job, etc. but the truth is, you cannot predict the future. That is why we are trying to encourage you not to go into debt over this. Also, do you really want to start your marriage off scratching up pennies and dollars to pay the bills? Or have a little cushion to do a few fun things after the wedding?

Carebear - I don't know where to start. Your perspective is just beyond flawed. Just because "Girls dream of this day their whole lives, it should be close to what they want to do." Does not justify a loan. I mean, at what point do you put the breaks on the spending when you can't afford to pay for the event in the first place and have to borrow money?

ETA for credentials: MBA and general common sense.

I have given up lots of things to have a wedding close to what I can afford. Im not saying have a horse drawn carriage or a wedding that is fit for royalty. BUT.... If you have always wanted a church wedding with a nice reception you should do it! I have cut back in a lot of areas to keep in within my budget range. I dont think there is anything wrong with wanting a wedding and to get married in front of all your family and friends.

Bad, bad, bad idea.

There's nothing wrong with it if you can afford it. I've always dreamed of lying around the house being fed bon bons by my monkey servant, having a maid, and being a trophy wife. That doesn't mean it's reality and I'm entitled to it just because I want it.

A wedding is one day... one day. Don't put your entire future in jeopardy over it.

Yeah, borrowing against a 401k - should be done in emergencies only due to fees and tax shit. Seriously, don't do it.

Before you start thinking of a loan, start budgeting and planning - and seeing how you can save up for as much as you can. But if you are dead set against borrowing money, I agree with the ones who suggested an interest-free credit card or a personal loan through your bank. I'd be very cautious of a third-party lender, who might have crazy stipulations (i.e. high late fees, automatic triple of interest if there's a late payment, etc.).

Honestly, how you fund your wedding is none of our business, but I would highly suggest not paying for things on a credit card and/or taking out a loan. Why do you want to begin your married life in debt? I always have the same advice, have the wedding that you can afford. I also don't really understand how you've been together for 5 years and have nothing to put towards a wedding. FH and I have been saving for years because we knew that marriage was in our future.

There are only three good debts: house, car, and school. If its not on this list, don't get a loan for it. I am in school, this is what I've learned in every finance class. A JOP wedding at the court house does not cost 5,000. It costs 20 to 50. Do that and have a small vow renewal in 5 years.