How matrimonial loans work?

Everyone wants their wedding day to be a fun and memorable occasion that marks the beginning of something great. Beautiful surroundings and good food go a long way towards setting your mood, and you may want to share this opportunity with your network of friends and family.

For many people, this means that weddings are expensive. What if you don’t have the means to throw the party you want? Does it make sense to get credit for your wedding expenses?

People certainly lend to the wedding, but it’s a risky move and wants to be trained before going on the trip.

Should I use a wedding loan


It would be irresponsible to discuss your options without first offering advice: do not take on debts to pay for your wedding. You want to start on the right foot with your new spouse, and starting debt will not help.

Studies often show that financial issues are common (if not the most common) driver of stress in relationships. Why put yourself or your spouse in a difficult position?

Would it be better to start your marriage by building your future together (as opposed to playing catch-up)? You could save for the home or – if the kids are pictured – for your child’s education.

Plus, you need to plan and save for your golden years together. Even if making a monthly payment on a wedding loan seems reasonable, those payments could go a long way if you allow them to link to your retirement account for several decades.

If you don’t have money now, how will things be different from the day after the wedding?

If you decide to borrow


If you simply need to get credit for your wedding, borrow wisely. Most loans, especially if they are sold under wedding-specific contracts, are just personal loans. This means that you will not pledge collateral – your profit estimates and your income are the factors that determine whether or not you will receive a loan.

Before applying, check your credit and fix any errors or negative items that will prevent you from getting the best deal.

It may be necessary to join forces. If you are unable to qualify for a loan yourself (because you have low or poor credit or insufficient income to qualify), your future spouse may need to sign a loan.

This means that they are both equally responsible for repayment – which is a good or bad idea depending on how you look at it (equal responsibility means you are equal partners, but if something goes wrong, you will both end up with bad credit). For best conditions, look for credits with the following features:

  • Unsecured loans require no security, and you will not lose your house or car if you do not pay
  • Short-term loans have less time to repay, so you will pay less interest over your life (and you can put the loan behind you faster)
  • A fixed interest rate means that you will know exactly what your payment is until you get into debt (although you can get slightly lower rates if you go with a variable rate)
  • Installment loans are one-time loans that you pay over time

Where to lend


For the best rates, get a personal loan from a bank, credit union, or online lender.

Lenders can also be an option – they offer relatively short-term loans at competitive prices. If you are unable to pay off the loan within a few years, it might be best to rethink it.

Credit cards are risky for financing your wedding. Sure, they are easy to use, but things can easily get out of control. If you have excellent credit and (more importantly) a plan to pay off your loan within six months or a year, you can use a 0% interest benefit check. But if you don’t pay off the loan quickly, you’ll almost certainly find yourself in the head.

Few alternatives


Since we have already spoiled the romantic mood, here are some alternatives to getting a loan for your wedding. If you don’t have enough money to get your wedding done, something has to be given, whether it’s now or later.

  • Budget and save: Unless you are getting married next month, you have time to plan and set aside money. Pay for what you can do on your own – developing this habit will serve you all your years together. Start building your life together before you get married.
  • Family and friends: Some people would be mortified to ask friends and family to help with their wedding. If you are not one of them, think of creative ways to help. At one extreme, you can simply ask for cash and donate a wedding. Alternatively, your friends and family can offer their time, skills and other resources: maybe someone has beautiful assets for the big day, someone else is an amazing cook (with the ability to serve many people), and you also know a great photographer (who won’t “forget” to take photos as the night unfolds). Your loved ones want nothing more than to help you start a happy life together.
  • Set aside the cost: Maybe you can keep buying that expensive ring. Start with something you can now afford and upgrade later in life (maybe at a significant anniversary or whenever your financial situation allows).
  • Turn it over: You may need to make tough decisions about your wedding day. Can you invite fewer people or make the event more modest? Maybe the open bar is not on the cards. Your guests will remember the overall feeling of the day more than the specifics (and again, your future happiness is the most important thing).

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