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Savvy October 2016

Credit Card vs. Loan

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BrideToBe, on July 27, 2015 at 2:08 PM

Posted in Planning 46

I know everyone will say that you should have the money to get married or you need to wait, this is something we have talked about and have decided to have a small wedding so the debt we have will be paid off quickly. We are young so this is why we don't have very much in savings, but we have been...

We are young so this is why we don't have very much in savings, but we have been together for over 5 years so we aren't exactly rushing into marriage either. I know a lot of people who have gotten married and said they put it on credit cards. I'm nervous about credit cards as I don't want it to ding our credit if our cost goes on the high end of our limit not to mention the higher interest rates.

I did find a wedding loan through Promise Financial and I applied for a 5,000 loan and got a 6.2 interest rate and a 7.57% APR. The loan says that when it is paid in full including interest it will cost a total of $5500 in 3 years.

Anyone know of the loan company? We are asking close family to help us out but we aren't sure what they can give

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46 Comments

Master July 2015
annakay511 · on July 27, 2015 at 5:09 PM
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Depending on your credit scores and credit history, you may or may not be able to get a CC limit for the amount you need. You may be able to get a CC with 0% interest for a year, which would be a much better plan than paying interest on a loan DEPENDING on the APR once the year is up. This is a really personal question so you will just have to figure out what's best for you and your FH!
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Expert April 2016
Kelly · on July 27, 2015 at 5:23 PM
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I understand the wanting to have a wedding and that $5,000 is not a huge amount of money, but, its enough to sink you more than you want. What are the monthly payments of that loan? When you do your monthly budget, can you afford them, along with your normal bills now? Are you able to pay all your bills each month on time?

For saving, sometimes it a matter of not doing it, rather than not being able to afford it. Put away the loan payment that you would have each month, starting now. Pretend that you have that loan due now...can you make the payment each month? Put it in a savings account, and pay wedding expenses out of that. If you do take the loan out, start paying on it.

Sit down and make an honest budget. See where you are at.
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Dedicated August 2015
Alicia · on July 27, 2015 at 8:31 PM
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Just my opinion, but here's a tale of caution. My younger sister got married in San Diego and had a beautiful and expensive wedding paid for by credit cards. Fast forward to two years later and they got divorced and split up that debt. Starting marriage in debt is going to create stress on top of the stress of wedding planning. At the end of the day, you are just as married, so figure out what you can afford to pay for and stick to it.
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Celia Milton · on July 27, 2015 at 8:40 PM
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Dont' go into debt, especially debt funded by your 401K to have a party. Don't start your marriage in debt. Save what you can, do what you can afford, even if it's 15 people in a park with an officiant and a little lunch afterwards. The wedding isn't the marriage.
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VIP October 2016
HoneyLife · on July 27, 2015 at 8:44 PM
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Hello almost date twin! If you're going to do it anyways regardless of what we say, then Raelyn has the best plan you could take, but remember Alicia's cautionary tale! Whatever you do, do not borrow from your 401k, that's the worse advice ever. You know your financial situation the best, talk it over with FH and decide what you can save on. Good luck!
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Master May 2016
Bethie · on July 27, 2015 at 8:46 PM
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I agree with what everyone else has to say, it's a bad idea to start a marriage off with debt but I get it. I understand your situation. You want the marriage but you also want to have a day to remember... After all, you're only supposed to have one of these wedding things. If you are really young (under 30), I say put it off until you have the money yourself. If you want to get a loan, you could use something like prosper.com or lendingclub.com - I think you have to have pretty decent credit though. It's peer to peer lending so it's a cool concept. My friend has a loan with Lending Club and loves it.
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