Wedding loan

I agree with JaKLyn, paying back the interest in the loan will cost you way more then 3% of the venue fee.

But I'm with the majority here, don't go into debt for your wedding - you do not need to spend $20G+ on a wedding if you don't have it, if you truly want an extravagent wedding it is best to put the money aside over a long period of time (as Centrepiece suggested). FH and I are putting about $80 a week aside ($160 every paycheque) for a little under two years to pay for our wedding to avoid going in to debt. You have options besides financially hindering yourself for years: postpone the wedding and save, or if you must be married sooner rather than later have a small ceremony at city hall and then have a vow renewal when you can afford it, or downsize your current guest list because that is one of the bigger cost factors involved in a wedding.

Do you know how loans work?

Yes, I am not dumb, as though some of you may see it that way I have a loan out on my vehicle now. so I know how a loan works. We will have most of the money saved by the wedding and then will most likely receive the rest from family as gifts. we plan on using all of our gif money pay back the loan. You can save over time that's fine but there are cost you need up front we don't have full funds for yet. And yes I get most people don't do that but most people I know have. and I don't have the option of saving over time as there are several people on both sides of our families on there death beds and we are just praying they make it the 8 months we are waiting to get married. we have to get a loan I just wanted to know if anyone had done it who they went through.

If you have good credit there are many banks that will allow to to take out a line of credit with 12-18 months interest free. I would go with a financial institution that can give you that, or that can give you the lowest interest rate.

I'm sorry but if you are looking at having enough in wedding gifts to pay off the loan, I just don't see good financial thinking here. If these people are on their death beds why are you waiting til May to get married? Why not do an afternoon wedding with cake and punch much sooner?

Yes of course payments come up front, but the majority of the funds are due within the last two months before the wedding. As you save you can spend from that savings on the wedding (that's what it is there for).

No we are relying on the gifts to pay back the entire loan we are saving now and will have most of what we need to pay back saved by then. We are using what we have now and putting what I which is about 300 a month into savings a month. My FH and I Are both in school and he only works part time bc he is in school fulltime so that is another reason we have to wait and bc of money and travel for OOT guest most said they couldn't come until then and these are also important people to us. Bc the biggest bill (catering) isn't due until the week before we wont probably take out the loan until the month or maybe two before the wedding to also avoid interest that doesn't need to be paid and to see how much we have saved and what we still need by then. We do plan on putting all of our taxes in saving s when we get them back which should help. We are not trying to have a super extravagant wedding we just both come from huge families. so the loan wont take long to pay off because it wont be much we need to borrow. hopefully not more than 2k.

then will most likely receive the rest from family as gifts. we plan on using all of our gif money pay back the loan.

don't count your chickens. It's that kind of attitude that will put you in over your head. A car loan is 100% different than taking out a loan for a party. Asking about a wedding loan really does say you don't understand how loans work.

Oh honey...

I guess since most have already commented on their opinion of pulling out a loan for your wedding, I won't say anything about that.

But I will say, if your main concern is making sure that your family is still alive to see your wedding, why not do something small and inexpensive as soon as you can afford it? A beautiful wedding could be done for around a $1k even! Here is a website that shows how people did their weddings within different budget ranges.

http://thebudgetsavvybride.com/wedding-budgets/#jsBIDPHYSc30xo6l.32

The only reason I bring this up is because it could save you a lot of grief that comes with being in debt. And if you are still in school, I know from personal experience (I have student loans) that all of that debt can pile up quickly. I would just hate to see you overburden yourself if you don't have to. If you did a smaller wedding and decided to pull out a loan for that, at least you wouldn't have nearly as much to pay back. But I definitely think your wedding should fit your financial situation. The wedding is really to celebrate your union with your fiance. You don't need to overextend yourself to make that beautiful.

With that, if you decide to pull out a loan for it, make sure you can afford the payments out of your own pocket in case the gift money doesn't cover it. Again, if you do a sweet, small event with a lower budget, it will really help with any future payments. Also, make sure the bank is reputable and can offer you a low interest rate. I hope everything works out for you!

ETA: I also wanted to make the point that if you both have huge families, you may want to consider just inviting whoever you are closest to. I know that sounds harsh, but your extended family can still share in your happiness without being at the wedding.

Okay. If that is what you think. I am don't being called dumb and people assuming I don't know things everyone does things differently. so, Happy Planning.

Honestly, if you're looking to just get a $2K loan from the bank why not just look for a way to cut some costs from your wedding? Cut your flower budget or something that isn't necessarily essential.

Double post.

Good Lord! No one is calling you dumb. They are saying it would be a dumb decision to make. Smart people make dumb decisions all the time. I don't see why you can't push back the wedding until you actually can afford a wedding. You want to know if someone had experience with this? I had a friend who took a loan out for a wedding and she said it was the worst decision she has ever made. They are probably going to have to file for bankruptcy soon, actually. And counting on gifts to pay back the loan is also a dumb idea. She didn't get nearly as much as she thought she would. She couldn't pay back the loan. Never start a marriage with debt. If you honestly think that you will receive enough money from family to pay off the loan, why not start by asking them if they wouldn't mind helping you guys out with the cost of the wedding as their wedding gift to you? That's what our family is doing.

To be fair, I did use the word dumb. But I said it would be a dumb thing to do, not that you are dumb.

I work in finance, so I am especially sensitive to people making poor life choices that are likely to set them back for years down the road. My first job was in financial planning and asset management, and I have about a hundred stories about what will happen when you don't spend and save wisely.

FH is bringing $380,000 in med school debt to our marriage, so I understand what being saddled with debt will be like, and I have my own loans from grad school. If at all possible, cutting costs, like buying a cheaper/used dress, limiting an open bar to just beer and wine, etc, is always, always always the way to go. Postpone the honeymoon. Cut back on the catering or get restaurant catering. Get your cake from Sam's Club. Borrowing money for a party is an incredibly poor financial decision.

Do you really want to start a marriage with no savings and *more* required payments hanging over your head?

Don't do it.

I do get were all of you are coming from, and I do very much appreciate the advice. After thinking it over and really looking at it we will only need about 2k when final bills roll around which between parents and grandparents I am sure they will loan out or gif the money interest free to us ( my grandparents have done it for school and cars and just put us on a low monthly payment interest free payment plan) so I will speak to them when the time comes closer and I may get a second job in retail just for Christmas for the extra money.

Is this for real?

You don't need a loan because you don't need a wedding. If you "need" to get married now then have a courthouse wedding. Then if you really feel you need a party then wait five years and have a vow renewal. When you can afford it. If my mother didn't offer to pay for the wedding, FH and I would elope, just us, and have a nice vacation instead. I understand that some of your people are dying. My father is dead. All of my grandparents are dead. But it is just how life works. I suggest a courthouse wedding now and a party much later.

@MrsMem I understand you are not dumb and know what a loan is. My best advice is in agreement with others: a. have a small wedding you can afford or b. postpone and save for the wedding you want.

If you must take a loan, I suggest:

1. Use a credit union. Lower interest rates and more reputable. Also probably will explain all your options to you so you can be informed.

2. Is it an option to loan from a family member? Draw up terms for repayment and have it notarized. You will be held to this but could be lower or no interest rate.

3. Could either set of parents help out?

Suggestions to save money and avoid loan:

1. Thurs/Sunday Wedding

2. Brunch or Cake/ Punch wedding. Start Ceremony at 1pm and follow with cake and punch. Catering is biggest expense so you won't have to provide a meal.

3. Have ceremony and reception at church. Usually lower fee, and you could serve cake and punch in gathering hall. Many churches won't allow alcohol but will allow cake and punch

4. Have 0 attendants. Then you just need flowers for FH and you.

5. Backyard BBQ wedding

6. Winter wedding