Are you considering taking out a loan for your wedding? While some people shy away from this step, it can be a great way to ensure that you have a wedding you will enjoy by having the cash needed upfront to make it happen. The trick, of course, is to wisely utilize the loaned funds in the right ways. What are some of these smart choices? Here are five key tips.
1. Don't Publicize the Money. Not only does the wedding couple often have a hard time staying within a wedding budget, but those around them do as well. If your friends, family, and helpers find out you have a pool of available cash, they might make it even harder to stick to your guns. Avoid this by keeping your finances guarded from well-meaning friends.
2. Prioritize Your Spending. Take time to write down a list of your wedding priorities in order of importance to you and your partner. This list is unique to each couple, but it will serve as a guide as to how to spend your loan funds in ways that will mean the most to you personally.
3. Stick to Your Budget. Before taking out a loan, you should have done enough research to know what you need in order to have the right elements to make your wedding. Taking out a larger loan than necessary could lead to overspending and financial pressure. Instead, plan your needs in each category, then apply for this amount plus a small overage in case prices change.
4. Use Gift Money. One of the most painless ways to pay back the loan is to use wedding gift money you will receive. As a couple, decide now what you might need to keep for other things — such as honeymoon expenses — and what you will earmark to pay against the loan after the big day. You'll get a jump-start on the loan payment and begin your new life on better footing.
5. Start Repayment Now. Make a plan to repay the loan as a couple before you even receive the money. And as much as you might be busy with wedding planning, prioritize repayment on an aggressive schedule right from the start. This way, you will have gotten the financial assistance you needed but won't delay developing good payment habits.
If you follow these five steps to success with your wedding loan, your big day will be even more special and relaxing. To learn more about loan options, contact a service like Texas Bay Credit Union.